pcNewsWire – Spectra7 Microsystems Inc. (TSX: SEV) has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. for a bought deal of 10,000,000 units at $0.40 per unit for gross proceeds of $4.0 million.
Net proceeds will be used for research and development, interest repayment and for working capital and general corporate purposes.
SPECTRA7 MICROSYSTEMS INC. ANNOUNCES $4.0 MILLION BOUGHT DEAL FINANCING
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES
JUNE 1, 2017 – Toronto, ON – Spectra7 Microsystems Inc. (TSX: SEV) (“Spectra7” or the “Company”) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. (together, the “Underwriters”) to purchase on a bought deal basis, 10,000,000 units (“Units”) of Spectra7 at a price of $0.40 per Unit (the “Offering Price”) for gross proceeds to the Company of $4.0 million (the “Offering”).
Each Unit shall consist of one common share of the Company (“Common Share”) and onehalf of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will entitle the holder to acquire one Common Share at an exercise price of $0.55 per Common Share for a period of two years following the closing of the Offering (“Closing”).
The expiry date of the Warrants may be accelerated by the Company at any time if the volume weighted average trading price of the Common Shares on the facilities of the Toronto Stock Exchange (or such other exchange on which the Common Shares trade) is greater than $0.85 for any 10 consecutive trading days following the date that is four months and one day after the closing of the Offering.
The Company will grant the Underwriters an option to acquire up to an additional 15% of the total number of Units sold under the Offering for over-allotment and market stabilization purposes, which option is exercisable in whole or in part at the discretion of the Underwriters for a period of 30 days from and including the Closing.
The net proceeds from the Offering will be used for research and development, interest repayment and for working capital and general corporate purposes.
The Units will be offered by way of a short form prospectus to be filed with the securities commissions and other similar regulatory authorities in each of the provinces of Canada (except Québec), pursuant to National Instrument 44-101 Short Form Prospectus Distributions, and in those jurisdictions where the Offering can lawfully be made including in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended.
The Closing of the Offering is scheduled to occur on or about the week of June 19, 2017, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities, and the satisfaction of other customary closing conditions.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or any state securities laws and may not be offered or sold in the United States unless registered under the 1933 Act and any applicable securities laws of any state of the United States or an applicable exemption from the registration requirements is available.
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 broadband connectivity markets. Spectra7 is based in San Jose, California with design centers in Markham, Ontario, Cork, Ireland, and Little Rock, Arkansas. For more information, please visit www.spectra7.com.
For more information, please contact:
Chief Financial Officer
SOURCE: Spectra7 Microsystems Inc.