Spectra7 Announces TSXV Conditional Approval of Proposed Debenture Amendments

Rhea-AI Summary

Spectra7 Microsystems Inc. announced on November 16, 2021 that the TSX Venture Exchange (TSXV) has conditionally accepted amendments to its 7% unsecured convertible debentures. The proposed amendment involves changing the conversion price from $5.00 to $2.50 per common share, effective from January 10, 2022 to July 9, 2022. If approved, the conversion price will remain at $2.50 until maturity. Final approval from the TSXV and an extraordinary resolution from debenture holders are pending.

Positive

• Conditional acceptance from TSXV for proposed debenture amendments.
• Maintained conversion price at $2.50 per share until maturity.

Negative

• Proposed amendment requires final approval from TSXV and debenture holders, leading to uncertainty.

SAN JOSE, Calif., Nov. 16, 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, today announced that the Company has received conditional acceptance from the TSX Venture Exchange (the "TSXV") for certain proposed amendments to the Company's existing 7% unsecured convertible debentures (the "Debentures"). Under the terms of the Debentures, the Company was required to seek approval from the TSXV to amend 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 10, 2022 to July 9, 2022 (the "Proposed Amendment").

The Debentures are currently convertible at a price of $2.50 per common share until January 9, 2022. If the Proposed Amendment is enacted, the conversion price will remain at the current price of $2.50 per common share until maturity.

The Proposed Amendment has been conditionally accepted by the TSXV, but remains subject to final approval by the TSXV and the passing of an extraordinary resolution of the holders of the Debentures pursuant to the terms of the indenture governing the Debentures. The Company shall issue a further release once the Proposed Amendment has been finalized.

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.

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 statements regarding the Debentureholder's approval of the Proposed Amendment, the TSXV's final approval of the Proposed Amendment, and 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:

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 significance of the conditional acceptance from TSXV for SPVNF?

The conditional acceptance allows for proposed amendments to the company's convertible debentures, which is a step towards financial restructuring.

What are the new terms for the convertible debentures announced by Spectra7?

The conversion price for the convertible debentures is proposed to be amended from $5.00 to $2.50 per common share.

What is the timeline for the proposed debenture amendments for SPVNF?

The amendments are proposed to be effective from January 10, 2022, to July 9, 2022.

What does the proposed amendment mean for existing debenture holders of SPVNF?

If the amendments are finalized, the conversion price will remain stable at $2.50 per share, which could impact their investment returns.

How does the amendment affect the share price of SPVNF?

The amendment might stabilize or influence SPVNF's share price by enhancing the conversion feature of the debentures.