Spectra7 Microsystems (SEV-T) Oct 26, '16 is pleased to announce that it has closed its previously announced bought deal offering of common shares of the Company at a price of $0.34 per Common Share. The Offering was underwritten by a syndicate of underwriters led by Canaccord Genuity Corp. and including Dundee Securities Inc. and Mackie Research Capital Corporation.
The Offering resulted in the issuance of a total of 19,705,883 Common Shares for gross proceeds to the Company of $6,700,000. As previously announced, Spectra7 has also granted the Underwriters an over-allotment option to purchase up to an additional 2,955,882 Common Shares on the same terms and conditions, exercisable at any time in whole or in part, up to 30 days following the date hereof.
In consideration of the services provided by the Underwriters, the Company paid the Underwriters a cash commission up to 6% of the gross proceeds of the Offering, and issued an aggregate of 1,410,941 non-transferable compensation options (the "Compensation Options"). Each Compensation Option is exercisable into one Common Share at a price of $0.34 per share for a period of 24 months from the date hereof.
Management and members of the Board of Directors of the Company subscribed for a total of $716,000 of the Offering. Participation of insiders of the Company in the Offering constitutes a "related party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"), but it is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of securities being issued to insiders nor the consideration being paid by insiders will exceed 25% of the Company's market capitalization. The Company did not file a material change report 21 days prior to the closing of the Offering as the details of the participation of the insiders of the Company had not been confirmed at that time.
The net proceeds from the Offering will be used for research and development, debt repayment, working capital and general corporate purposes.
ABOUT SPECTRA7 MICROSYSTEMS INC.
Spectra7 Microsystems Inc. is a high performance consumer connectivity company delivering unprecedented bandwidth, speed and resolution to enable disruptive industrial design for leading consumer electronics manufacturers in virtual reality, augmented reality, wearable computing, data centers and ultra-HD 4K/8K displays. Spectra7 is based in Palo Alto, California, with design centers in Markham, Ontario, Cork, Ireland, and Little Rock, Arkansas. For more information, please visit www.spectra7.com.
Sean Peasgood
Investor Relations
t: 416.565.2805
e: ir@spectra7.com
w: www.spectra7.com
Rob Chalmers
Investor Relations
t: 647.402.7552
e: ir@spectra7.com
w: www.spectra7.com
Dave Mier
Chief Financial Officer
t: 925.858.7011
e: pr@spectra7.com
w: www.spectra7.com |
