Spectra7 Microsystems lowers debenture conversion price
2020-12-23 17:27 ET - News Release
Mr. Dave Mier reports
SPECTRA7 ANNOUNCES COMPLETION OF AMENDMENT AND EXTENSION OF CONVERTIBLE DEBENTURE
Spectra7 Microsystems Inc. has received the consent, by extraordinary resolutions of the holders, to amend certain terms of its existing 7 per cent unsecured convertible debentures pursuant to a first supplemental debenture indenture.
Pursuant to the first supplemental debenture indenture, the maturity date of the debentures has been extended 18 months from Jan. 9, 2021, to July 9, 2022, and the conversion price of the principal amount of the debentures has been reduced from 35 cents per common share to five cents per common share until Jan. 9, 2022, and then 10 cents per share until July 9, 2022. In consideration for the amendments, the company has provided a 10-per-cent increase to the outstanding principal obligations of the debentures with such increased amount not being convertible into common shares. The interest rate on the debentures is not being amended.
The first supplemental debenture indenture also amends the debentures to allow the company to conduct patent sales or patent secured debt financings without approval of the debentureholders provided that the company uses 50 per cent of the net proceeds received from such sales or debt financings toward the pro rata repayment of the principal amount of the debentures and accrued and unpaid interest on such amount with the remaining 50 per cent applied to working capital of the company. Finally, the debentures have been amended to include a make-whole interest payment to the maturity date for debentures that are converted prior to maturity.
About Spectra7 Microsystems Inc.
Spectra7 Microsystems 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 centres and other connectivity markets. Spectra7 is based in San Jose, California with a design center in Cork, Ireland, and technical support location in Dongguan, China.
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