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TORONTO, Oct. 4, 2016 /CNW/ - 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, 17,650,000 common shares
("Common Shares") of Spectra7 at a price of $0.34 per Common Share (the "Offering Price") for gross
proceeds to the Company of $6.0 million (the "Offering").
The Company will grant the Underwriters an option (the "Underwriters' Option") to increase the size of the Offering by up to 15%
at any time up to the closing of the Offering ("Closing").
Management and members of the Board of Directors of the Company will be subscribing for a total of $1,000,000 of the Offering.
The net proceeds from the Offering will be used for working capital and general corporate purposes.
The Common Shares 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 the United States on
a private placement basis pursuant to an exemption 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 October 24, 2016, 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 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
Forward-looking (safe harbour) statement
Certain statements contained in this press release constitute "forward-looking statements". All statements other than statements
of historical fact contained in this press release, including, without limitation, those regarding the Company's future financial
position and results of operations, strategy, proposed acquisitions, plans, objectives, goals and targets, and any statements
preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "plan", "continue", "will", "may",
"would", "anticipate", "estimate", "forecast", "predict", "project", "seek", "should" or similar expressions or the negative
thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company's
expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and
involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from
what is expressed, implied or forecasted in such forward-looking statements. Additional factors that could cause actual results,
performance or achievements to differ materially include, but are not limited to the risk factors discussed in the Company's annual
MD&A for the year ended December 31, 2015. Management provides forward-looking statements because
it believes they provide useful information to investors when considering their investment objectives and cautions investors not to
place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release
are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no
assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the
expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press
release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances
or otherwise, except as required by law.
SOURCE Spectra7 Microsystems Inc.
