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TORONTO, July 8, 2022
/CNW/ -- (TSXV:SEV) (OTCQB:SPVNF) Spectra7
Microsystems Inc. ("Spectra7" or the "Company"), a
leading provider of high-performance analog semiconductor products
for broadband connectivity markets, today announced that
it has received commitments from a requisite percentage of
debentureholders to amend and extend (the "Amendments") the
Company's existing $6.8 million of 7%
unsecured convertible debentures (the "Debentures") due to
mature on July 9, 2022. All dollar
amounts referenced in this release are in Canadian
dollars.
Pursuant to the commitment to amend, the Company has
agreed to pay 20% of the principal amount together with the
outstanding 10% bonus principal due on the Debentures on the date
the Amendments take effect, including accrued and unpaid interest
earned thereon, with the remaining principal amount of Debentures
falling due on September 9, 2022. As
consideration, the Company has agreed to pay a non-convertible
extension bonus at maturity to the Debentureholders equal to 3.688%
of the principal outstanding at the time the Amendments take
effect, after the repayment described above.
The commitment to amend will also include the
addition of a right for the Company to prepay the Debentures at any
time prior to maturity and a right to complete a debt financing if
the net proceeds from such financing are applied against repayment
of the outstanding principal, interest and fees of the
Debentures.
The commitment to amend are subject to
approval by the TSX Venture Exchange, formal approval of holders of
greater than 66 2/3% of the outstanding Debentures and the
finalization of a supplemental indenture. The Company shall issue a
further release once the amendments have been finalized and
approved.
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 data centers, 5G infrastructure,
virtual and augmented reality, and other connectivity markets.
Spectra7 is based in San Jose,
California with a design center in Cork, Ireland and technical support location
in Dongguan, China. For more
information, please visit www.spectra7.com.
Neither the TSX Venture Exchange nor its regulation services
provided (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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, the Company's ability to attain all necessary
Debentureholder and TSX Venture Exchange approvals to effect the
Amendments, the Company's strategy, 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 information form for the year
ended December 31, 2021. 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:
Matt Kreps/Jim Fanucchi
Darrow Associates
214-597-8200
ir@spectra7.com
Spectra7 Microsystems Inc.
Bonnie Tomei
Chief Financial Officer
669-212-1089
ir@spectra7.com
Spectra7 Microsystems Inc.
John Mitchell
Public Relations
650-269-3043
pr@spectra7.com
SOURCE Spectra7 Microsystems Inc.