Spectra7 Announces Completion of Debenture Amendments

Rhea-AI Summary

Spectra7 Microsystems Inc. announced on December 13, 2021, the completion of amendments to its existing 7% unsecured convertible debentures. The amendments, effective December 9, 2021, maintain the conversion price at $2.50 per common share until maturity, specifically through July 9, 2022. The interest rate and other debenture features remain unchanged. This strategic move enables the company to preserve its current conversion price, providing stability in the capital structure amidst its focus on high-performance analog semiconductor products for connectivity markets.

Positive

• Maintaining conversion price at $2.50 per share until maturity stabilizes the capital structure.
• No changes to interest rate and other features of the debentures ensure predictability for investors.

Negative

• None.

SAN JOSE, Calif., Dec. 13, 2021 /PRNewswire/ -- (TSXV:SEV) (OTCQB:SPVNF) Spectra7 Microsystems Inc. ("Spectra7" or the "Company"), a leading provider of high-performance analog semiconductor products for broadband connectivity markets, announces that the Company has entered into a second supplemental convertible debenture indenture (the "Supplemental Indenture") on December 9, 2021 to bring into effect the previously announced amendments to the Company's existing 7% unsecured convertible debentures (the "Debentures"). The Supplemental Indenture amends the conversion price of the principal amount of the Debentures from $5.00 per common share to $2.50 per common share during the period from January 9, 2022 to July 9, 2022 (the "Amendment").

The Debentures are currently convertible at a price of $2.50 per common share until January 8, 2022. As a result of the Amendment, the conversion price will remain at the current price of $2.50 per common share until maturity. The interest rate and other features of the Debentures are not being amended.

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 virtual reality, augmented reality, mixed reality, data centers 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 TSXV nor its regulation services provided (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

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

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SOURCE Spectra7 Microsystems Inc.

FAQ

What is the recent debenture amendment by Spectra7 Microsystems?

On December 9, 2021, Spectra7 Microsystems amended its 7% unsecured convertible debentures, maintaining the conversion price at $2.50 until July 9, 2022.

When does the amended conversion price for Spectra7's debentures apply?

The amended conversion price of $2.50 per share applies from January 9, 2022, to July 9, 2022.

What is the significance of maintaining the $2.50 conversion price for SPVNF?

Maintaining the $2.50 conversion price is beneficial for SPVNF as it stabilizes the capital structure and provides predictability for investors.

Are there any changes to the interest rate of Spectra7's convertible debentures?

No, the interest rate and other features of the convertible debentures remain unchanged according to the recent amendments.