Spectra7 Files 2024 Annual Financial Results, Provides Update on Previously Announced Transaction with Parade Technologies
Spectra7 Microsystems (OTCQB:SPVNF) has announced the filing of its 2024 financial results and provided an update on its previously announced asset sale to Parade Technologies. The transaction, valued at US$9 million, involves Parade acquiring substantially all of Spectra7's assets, including IP, products, designs, and inventory.
Under the agreement, Parade has advanced US$750,000 in bridge loans to Spectra7. The final purchase structure includes a US$1.8 million escrow amount held for one year. Spectra7 plans to distribute the net proceeds to shareholders through a special distribution, estimated at US$0.0039 per share initially, with potential additional US$0.0065 per share from escrow release.
The transaction requires approval from 66 2/3% of Spectra7 shareholders at the April 17, 2025 meeting, with 60.44% already committed through voting agreements. The deal is expected to close the following week, with Parade planning to employ the majority of Spectra7's workforce.
Spectra7 Microsystems (OTCQB:SPVNF) ha annunciato la presentazione dei risultati finanziari per il 2024 e ha fornito un aggiornamento sulla vendita di asset precedentemente comunicata a Parade Technologies. L’operazione, del valore di 9 milioni di dollari USA, prevede che Parade acquisisca sostanzialmente tutti gli asset di Spectra7, inclusi IP, prodotti, progetti e inventario.
Secondo l’accordo, Parade ha anticipato a Spectra7 un prestito ponte di 750.000 dollari USA. La struttura finale dell’acquisto prevede un importo in deposito cauzionale di 1,8 milioni di dollari USA trattenuto per un anno. Spectra7 intende distribuire i proventi netti agli azionisti tramite una distribuzione speciale, inizialmente stimata in 0,0039 dollari USA per azione, con un possibile ulteriore importo di 0,0065 dollari USA per azione derivante dal rilascio del deposito cauzionale.
L’operazione necessita l’approvazione di due terzi (66 2/3%) degli azionisti di Spectra7 durante l’assemblea del 17 aprile 2025, con il 60,44% già impegnato tramite accordi di voto. La chiusura è prevista per la settimana successiva, con Parade che intende assumere la maggior parte del personale di Spectra7.
Spectra7 Microsystems (OTCQB:SPVNF) ha anunciado la presentación de sus resultados financieros de 2024 y ha proporcionado una actualización sobre la venta de activos previamente anunciada a Parade Technologies. La transacción, valorada en 9 millones de dólares estadounidenses, implica que Parade adquiera sustancialmente todos los activos de Spectra7, incluyendo propiedad intelectual, productos, diseños e inventario.
Según el acuerdo, Parade ha adelantado 750,000 dólares estadounidenses en préstamos puente a Spectra7. La estructura final de la compra incluye un monto en depósito en garantía de 1.8 millones de dólares estadounidenses retenido por un año. Spectra7 planea distribuir las ganancias netas a los accionistas mediante una distribución especial, estimada inicialmente en 0.0039 dólares por acción, con un posible adicional de 0.0065 dólares por acción proveniente de la liberación del depósito en garantía.
La transacción requiere la aprobación del 66 2/3% de los accionistas de Spectra7 en la reunión del 17 de abril de 2025, con un 60.44% ya comprometido mediante acuerdos de voto. Se espera que el acuerdo se cierre la semana siguiente, con Parade planeando emplear a la mayoría de la plantilla de Spectra7.
Spectra7 Microsystems (OTCQB:SPVNF)는 2024년 재무 결과를 발표하고 이전에 공지한 Parade Technologies에 대한 자산 매각에 관한 업데이트를 제공했습니다. 이번 거래는 미화 900만 달러 규모로, Parade가 Spectra7의 지적 재산권, 제품, 설계, 재고 등 거의 모든 자산을 인수하는 내용입니다.
계약에 따라 Parade는 Spectra7에 미화 75만 달러의 브리지 론을 선지급했습니다. 최종 매입 구조에는 1년간 보관되는 미화 180만 달러의 에스크로 금액이 포함되어 있습니다. Spectra7는 순수익을 특별 배당 형식으로 주주들에게 분배할 계획이며, 초기에는 주당 미화 0.0039달러, 에스크로 해제 시 추가로 주당 미화 0.0065달러가 지급될 수 있습니다.
이 거래는 2025년 4월 17일 주주총회에서 Spectra7 주주의 66 2/3% 이상의 승인을 필요로 하며, 현재 60.44%가 투표 계약을 통해 이미 동의한 상태입니다. 거래는 다음 주에 마무리될 예정이며, Parade는 Spectra7 인력의 대부분을 고용할 계획입니다.
Spectra7 Microsystems (OTCQB:SPVNF) a annoncé le dépôt de ses résultats financiers pour 2024 et a fourni une mise à jour concernant la vente d’actifs précédemment annoncée à Parade Technologies. La transaction, évaluée à 9 millions de dollars US, implique que Parade acquière la quasi-totalité des actifs de Spectra7, incluant la propriété intellectuelle, les produits, les designs et les stocks.
Dans le cadre de l’accord, Parade a avancé 750 000 dollars US à Spectra7 sous forme de prêt relais. La structure finale de l’achat comprend un montant en séquestre de 1,8 million de dollars US retenu pendant un an. Spectra7 prévoit de distribuer le produit net aux actionnaires via une distribution spéciale, estimée initialement à 0,0039 dollar US par action, avec un possible complément de 0,0065 dollar US par action provenant de la libération du séquestre.
La transaction nécessite l’approbation des deux tiers (66 2/3 %) des actionnaires de Spectra7 lors de l’assemblée du 17 avril 2025, avec 60,44 % déjà engagés via des accords de vote. La clôture est prévue la semaine suivante, Parade envisageant d’employer la majorité des employés de Spectra7.
Spectra7 Microsystems (OTCQB:SPVNF) hat die Einreichung seiner Finanzergebnisse für 2024 bekanntgegeben und ein Update zum zuvor angekündigten Verkauf von Vermögenswerten an Parade Technologies gegeben. Die Transaktion im Wert von 9 Millionen US-Dollar umfasst den Erwerb nahezu aller Vermögenswerte von Spectra7 durch Parade, einschließlich IP, Produkte, Designs und Inventar.
Im Rahmen der Vereinbarung hat Parade Spectra7 eine Brückenfinanzierung in Höhe von 750.000 US-Dollar gewährt. Die endgültige Kaufstruktur sieht einen Treuhandbetrag von 1,8 Millionen US-Dollar vor, der für ein Jahr gehalten wird. Spectra7 plant, den Nettoerlös durch eine Sonderausschüttung an die Aktionäre auszuschütten, zunächst geschätzt auf 0,0039 US-Dollar pro Aktie, mit einer möglichen zusätzlichen Ausschüttung von 0,0065 US-Dollar pro Aktie aus der Freigabe des Treuhandbetrags.
Die Transaktion erfordert die Zustimmung von 66 2/3 % der Spectra7-Aktionäre auf der Hauptversammlung am 17. April 2025, wobei bereits 60,44 % durch Stimmrechtsvereinbarungen gebunden sind. Der Abschluss der Transaktion wird für die folgende Woche erwartet, wobei Parade plant, den Großteil der Belegschaft von Spectra7 zu übernehmen.
- Asset sale to Parade Technologies valued at US$9 million
- Majority of employees to be retained by Parade Technologies
- 60.44% of shareholders already committed to supporting the transaction
- US$750,000 bridge loan received to maintain operations until closing
- Lower than previously disclosed special distribution due to increased employee compensation and wind-down costs
- US$1.8 million (20% of purchase price) held in escrow for one year
- Bridge loans become immediately payable if transaction fails to complete
- Shareholders to receive only US$0.0039 per share in initial distribution
A copy of the audited consolidated financial statements for the year ended December 31, 2024, and the corresponding management's discussion and analysis (the "MD&A") are available under the Company's profile on www.sedarplus.ca or through the investor relations section of the Company's website at www.spectra7.com.
Additionally, the Company is providing an update on its transaction with Parade Technologies, Ltd. ("Parade"), which was previously announced on March 7, 2025. The Company and Parade are parties to a definitive agreement (the "Purchase Agreement") under which Parade has agreed to acquire substantially all of the assets (the "Assets") of Spectra7 and its subsidiaries (the "Sale Transaction"). The Assets include intellectual property (IP), products, designs, inventory, and other specified items.
The purchase price (the "Purchase Price") for the Assets is
Pursuant to the Purchase Agreement, Parade has advanced loans to Spectra7 totaling
It is the intention of Spectra7 to distribute all of the net proceeds received from the Sale Transaction to its shareholders (other than dissenting shareholders) (the "Spectra7 Shareholders") and holders of pre-funded warrants. The Company anticipates making a special distribution (the "Special Distribution") to the Spectra7 Shareholders and holders of pre-funded warrants of all of the net cash proceeds received at Closing and one non-interest bearing contingent value right (each, a "CVR") for each common share or pre-funded warrant held on the record date for the Special Distribution. The distribution of the available Escrow Amount and any unused proceeds from the Sale Transaction shall be made to the holders of CVRs on a date to be determined by the Company as soon as possible following the Escrow Release Date. The cash portion of the Special Distribution shall be equal to the proceeds received by Spectra7 at the Closing less: (i) transaction costs including fees for financial and legal advisors, costs of the special meeting of Spectra7 Shareholders to be held to approve the Sale Transaction (the "Meeting"), escrow agent fees and fees payable to the TSX Venture Exchange (the "TSXV"); (ii) accounts payable and any employee severance and bonus costs; (iii) funds used for Spectra7's ordinary course expenses prior to Closing; and (iv) funds used by Spectra7 to continue to exist until on or after the Escrow Release Date.
The cash portion of the Special Distribution is estimated to be approximately
As of the date of this release, the number of common shares of Spectra7 outstanding (assuming the exercise in full of all of the 100,035,411 outstanding pre-funded warrants and settlement of all outstanding restricted share units, but excluding the exercise or conversion of any other outstanding securities of Spectra7 previously issued by Spectra7) is 276,622,494 common shares. Based on the above estimates and the common share amounts noted above, the total Special Distribution, including the estimated payment to CVR holders, to the Spectra7 Shareholders is expected to be approximately
It is anticipated that Parade shall be employing the substantial majority of the Company's employees upon completion of the Sale Transaction.
Closing of the Sale Transaction is subject to various conditions, including the approval of the TSXV and approval of at least 66 2/
Additional details relating to the Sale Transaction are set out in the management information circular of Spectra7 mailed to Spectra7 Shareholders in connection with the Meeting.
The Sale Transaction is expected to close in the week following the Meeting assuming approval is granted by the Shareholders.
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
Neither the TSX Venture Exchange nor its regulation services provider (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
Statements in this press release contain forward-looking information. Such forward-looking information may be identified by words such as "anticipates", "plans", "proposes", "estimates", "intends", "expects", "believes", "may" and "will". The forward-looking statements included in this press release, including statements regarding the Sale Transaction, the receipt of necessary Spectra7 Shareholder and TSXV approvals and satisfaction of other closing conditions, the anticipated timing of the meeting of Spectra7 Shareholders to approve the Sale Transaction and timing of Closing, the release of the Escrow Amount and the ultimate quantum and timing of the distributions payable to Spectra7 Shareholders upon Closing and release of the Escrow Amount.
In respect of the forward-looking statements and information included in this press release, Spectra7 has provided such in reliance on certain assumptions that it believes are reasonable at this time, including assumptions as to the timing of the Spectra7 Shareholder meeting, the ability of the parties to the Purchase Agreement to receive, in a timely manner and on satisfactory terms, necessary approvals to complete the Sale Transaction, the ability of such parties to satisfy, in a timely manner, the other conditions to the closing of the Sale Transaction, and assumptions related to the historical burn rate of Spectra7 and expenses becoming due prior to Closing. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond Spectra7's control. Such risks and uncertainties include but are not limited to: the risk that the Sale Transaction may not be completed on a timely basis, or at all; risks that the conditions to the consummation of the Sale Transaction may not be satisfied; the risk that the Sale Transaction may involve unexpected costs, liabilities or delays; the risk that, prior to the completion of the Sale Transaction, Spectra7's business may experience significant disruptions, including loss of customers or employees, due to transaction-related uncertainty or other factors; the possible occurrence of an event, change or other circumstance that could result in termination of the Sale Transaction; risks that the Sale Transaction may have a negative impact on the market price and liquidity of the common shares of Spectra7; risks related to the diversion of management's attention from the Company's ongoing business operations; risks relating to the failure to obtain necessary Spectra7 Shareholder and TSXV approvals; risks related to trade tariffs and retaliatory trade measures, specifically between
When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Readers are cautioned that the foregoing list of factors is not exhaustive. Details of additional risk factors relating to Spectra7 and its business, generally, are discussed under the heading "Business Risks and Uncertainties" in the MD&A, a copy of which is available on Spectra7's SEDAR+ profile at www.sedarplus.ca. These statements speak only as of the date of this press release. Except as otherwise required by applicable securities statutes or regulation, Spectra7 expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
For more information, please contact:
Matt Kreps, Managing Director
Darrow Associates Investor Relations
mkreps@darrowir.com
214-597-8200
Spectra7 Microsystems Inc.
Omar Javaid
Chief Executive Officer
ir@spectra7.com
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SOURCE Spectra7 Microsystems Inc.
FAQ
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What is the potential additional payment for SPVNF shareholders from the escrow release?
When is the SPVNF shareholder vote for the Parade Technologies transaction?
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