Spectra7 Announces Commitments to Amend and Extend Convertible Debentures

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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
[email protected]

Spectra7 Microsystems Inc.
Bonnie Tomei
Chief Financial Officer
669-212-1089
[email protected] 

Spectra7 Microsystems Inc.
John Mitchell
Public Relations
650-269-3043
[email protected]

SOURCE Spectra7 Microsystems Inc.