Poet customers not the only ones dragging their heels SAN JOSE, Calif., April 15, 2024 /PRNewswire/ -- (TSXV: SEV) (OTCQB: SPVNF)
As previously announced, revenue for the fourth quarter of 2023 was $0.1 million1, as the Company delayed order fulfillment in the quarter to manage distributor inventories, resulting from slower buildout activity in China. Spectra7 expects 2024 first quarter revenue to be approximately $0.75 million1, compared to $3.1 million for the first quarter of 2023, as a result of this continuing slowdown.
In its March 5, 2024 press release, the Company stated that it expects commercial production and sale of its industry leading Active Copper Cable ("ACC") semiconductor products in the second half of 2024. The Company also stated that it intended to effect a private placement of equity securities to provide working capital to support the production ramp of its new ACC semiconductor products, as well as general corporate purposes. The Company has not yet been able to complete a private placement of securities for these purposes, which has resulted in existing cash levels that will support operations only through the end of April 20242.
As a result, the Company's Board of Directors has initiated a process to explore a range of strategic alternatives to address its current liquidity position and focus on maximizing shareholder value. These alternatives could include, but are not limited to, emergency funding, a restructuring of the Company's capital, a sale of the Company, a merger or other business combination. There can be no assurance that the Company will be able to raise additional funding on terms favorable to the Company, if at all.
The Company has engaged Craig-Hallum Capital Group, a leading financial advisory firm, to assist in this comprehensive review.
"Spectra7's Board of Directors and management team are committed to exploring all strategic options to ensure the long-term success and sustainability of our business," said Ron Pasek, Chair of Spectra7's Board. "We believe that by pursuing these alternatives, we will identify the best opportunities to enhance value for our shareholders and strengthen our financial position."
The Company will continue to focus on its operational responsibilities and commitments to all stakeholders including employees, customers and suppliers.