Spectra7 Announces Share Consolidation
Spectra7 Microsystems Inc. announced a share consolidation on July 19, 2021, with shareholders approving a 1-for-50 share consolidation, reducing shares from 1,056,538,784 to approximately 21,130,775. This change aims to maintain shareholders' proportional ownership and voting power. The consolidation is slated to take effect around August 6, 2021, pending TSX Venture Exchange approval. Additionally, the company filed articles of continuance to shift its jurisdiction to Ontario, enhancing its ability to attract suitable board candidates.
- None.
- Share consolidation may signal underlying difficulties in maintaining share price or attractiveness.
- Potential dilution of shareholder value during consolidation process.
Company files articles of continuance to move its governing jurisdiction to the Province of Ontario
SAN JOSE, Calif., July 19, 2021 /PRNewswire/ -- (TSXV:SEV) (OTCQB:SPVNF) Spectra7 Microsystems Inc. ("Spectra7" or the "Company"), announces that board of directors of the Company has approved a consolidation of the Company's issued and outstanding common shares on the basis one new common share for every 50 existing common shares (the "Consolidation").
As a result of the Consolidation, the 1,056,538,784 common shares issued and outstanding prior to the Consolidation will be reduced to approximately 21,130,775 common shares. Each shareholder's percentage ownership in the Company and proportional voting power remains unchanged after the Consolidation, except for minor changes and adjustments resulting from the treatment of any fractional common shares.
The Company will not be issuing fractional post-Consolidation common shares. Where the Consolidation would otherwise result in a shareholder being entitled to a fractional common shares, the number of post-Consolidation common shares issued to such shareholder shall be rounded to the nearest whole number of post-Consolidation common shares.
Shareholder approval of the Consolidation was obtained at the Company's annual and special meeting of shareholders held on June 18, 2021. In connection with the Consolidation, the Company expects to send letters of transmittal to registered holders of its common shares for use in transmitting their existing share certificates ("Existing Certificates") to the Company's registrar and transfer agent, Computershare Trust Company of Canada, in exchange for new certificates ("New Certificates") representing the number of post-Consolidation common shares to which such shareholder is entitled as a result of the Consolidation. No delivery of a New Certificate to a shareholder will be made until the shareholder has surrendered its Existing Certificates. Until surrendered, each Existing Certificate shall be deemed for all purposes to represent the number of post-Consolidation common shares to which the holder is entitled as a result of the Consolidation.
The Consolidation is subject to the approval of the TSX Venture Exchange. The Company expects the Consolidation to be effective and the trading of the common shares of the Company reflecting the Consolidation to commence on or about August 6, 2021.
Spectra7 also announces that it has filed articles of continuance to continue its corporate existence from the Canada Business Corporation Act to the Ontario Business Corporation Act (the "Continuation"). Shareholders approved the Continuation at the Company's annual and special meeting of shareholders on June 18, 2021. The Continuation is being completed as management believes that Ontario's recent removal of director residency requirements will give the Company the best opportunity to attract and retain the most suitable candidates to serve on its board regardless of their jurisdiction of residence.
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 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 timing of the effective date of the Consolidation, 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 Management's Discussion and Analysis for the year ended December 31, 2020. 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.
John Mitchell
Investor Relations
650-269-3043
ir@spectra7.com
Spectra7 Microsystems Inc.
Bonnie Tomei
Chief Financial Officer
669-212-1089
pr@spectra7.com
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SOURCE Spectra7 Microsystems Inc.
FAQ
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