Spectra7 Announces Proposed Amendments and Extension of Convertible Debentures
July 8th, 2022 TORONTO, ON - (PR NewsWire) – (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 it has received commitments from a requisite percentage of debentureholders to amend and extend (the “Amendments”) the Company’s existing $6.8 million of 7% unsecured convertible debentures (the “Debentures”) due to mature on July 9, 2022. All dollar amounts referenced in this release are in Canadian dollars.
Pursuant to the proposed Amendments, the Company has agreed to pay 20% of the principal amount together with the outstanding 10% bonus principal due on the Debentures on the date the Amendments take effect, including accrued and unpaid interest earned thereon, with the remaining principal amount of Debentures falling due on September 9, 2022. As consideration, the Company has agreed to pay a non-convertible extension bonus at maturity to the Debentureholders equal to 3.688% of the principal outstanding at the time the Amendments take effect, after the repayment described above.
The proposed Amendments will also include the addition of a right for the Company to prepay the Debentures at any time prior to maturity and a right to complete a debt financing if the net proceeds from such financing are applied against repayment of the outstanding principal, interest and fees of the Debentures.
The proposed Amendments are subject to approval by the TSX Venture Exchange, formal approval of holders of greater than 66 2/3% of the outstanding Debentures and the finalization of a supplemental indenture. The Company shall issue a further release once the amendments have been finalized and approved.