SAN JOSE, CA–(Marketwired – July 24, 2017) – (TSX: SEV) Spectra7 Microsystems Inc., (“Spectra7” or the “Company”), a leading provider of high-performance analog semiconductor products for broadband connectivity markets, today announced the closing of the final tranche of its previously announced private placement of units (“Units”) consisting of one common share of the Company and one-half of one common share purchase warrant. The aggregate gross proceeds of the private placement, inclusive of the proceeds from the first tranche which closed on June 27, 2017 and $337,000 of subscriptions from the CEO and certain directors of the Company, is $1.4 million. This closing follows the previously disclosed $4.6 million bought deal public offering of Units closed by the Company on June 27, 2017 for aggregate gross proceeds of $6.0 million. The net proceeds from the financings will be used for research and development and general corporate purposes.
“Along with our continuing efforts to reduce operating expenses and grow revenues, these financings strengthen our balance sheet and allow us to develop our next generation of products,” said Spectra7 CEO Raouf Halim. “In the meantime, the virtual, augmented, and mixed reality markets continue to adopt our technology, and the Company is experiencing strong market traction with data center operators.”
The Company continues to advance the sale of its non-core Television tuner/demodulator and RF patents. Currently there are multiple parties doing due diligence. Although we cannot guarantee that this sale will proceed or provide a timeline, our discussions with these potential purchasers suggests that the previously disclosed estimate of $4 million plus potential future royalties remains a good target value for these assets.
ABOUT SPECTRA7 MICROSYSTEMS INC.
Spectra7 Microsystems Inc. is a high-performance analog semiconductor company delivering unprecedented bandwidth, speed and resolution to enable disruptive industrial design for leading electronics manufacturers in broadband connectivity markets. Spectra7 is based in San Jose, California with design centers in Markham, Ontario, Cork, Ireland, and Little Rock, Arkansas. For more information, please visit www.spectra7.com.
CAUTIONARY NOTES
Certain statements contained in this press release constitute “forward-looking statements”. All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the Company’s future financial position and results of operations, strategy, proposed acquisitions, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words “believe”, “expect”, “aim”, “intend”, “plan”, “continue”, “will”, “may”, “would”, “anticipate”, “estimate”, “forecast”, “predict”, “project”, “seek”, “should” or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company’s expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to the risk factors discussed in the Company’s annual MD&A for the year ended December 31, 2016. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law.
For more information, please contact:
Spectra7 Microsystems Inc.
Sean Peasgood
Investor Relations
416-565-2805
[email protected]
Spectra7 Microsystems Inc.
David Mier
Chief Financial Officer
669-284-3170
[email protected]
