Busy And Useful

BAU Summary: Looking forward to 2nd half of 2024 to see the orders flow with financial release during Q3/Q4. Spectra7 is placed with a good product at the right time, lets hope the patience pays-off.

AI Hyperscale Switch Manufacturer Confirms Market-Leading Performance of Spectra7 Enabled 800G Active Copper Cables

February 7th, 2024 SAN JOSE, CA – (CA NewsWire) – (TSXV:SEV) (OTCQB:SPVNF) Spectra7 Microsystems Inc. (“Spectra7” or the “Company”), the leader in high-performance analog semiconductors for broadband connectivity markets, such as AI networks, hyperscale data centers, and AR/VR, announces that its previously demonstrated market-leading performance of 800G Active Copper Cables (“ACCs”) embedded with Spectra7 semiconductors has been confirmed by the leading North American AI hyperscale data center switch manufacturer.

“We are gratified that this significant player in the AI hyperscale data center space has confirmed the market-leading performance of our proprietary ACC semiconductor products,” said Raouf Halim, CEO of Spectra7. “High speed cables are the vital arteries of AI networks. This paves the way for Spectra7 to be an important supplier to the $3 billion ACC market for hyperscale data centers.¹ We expect these products to be in full commercial production and sale in the second half of this year.”

EXTENSION OF CONVERTIBLE DEBENTURES

Spectra7 also announces that it has received commitments from holders (the “Consenting Holders”) of the requisite 80% of outstanding principal amount of its existing $8.873 million of 14% unsecured convertible debentures (the “Debentures”) to extend the maturity of the Debentures from December 31, 2024 to June 30, 2025 (the “Amendment”). As consideration for the Amendment, the Company has agreed to pay a non-convertible extension bonus at maturity to the Debenture holders equal to 1.5% of the principal outstanding on the effective date of the Amendment.

The Consenting Holders confirm that they remain committed to the execution of the Company’s roadmap, and believe the extension will provide the runway to reach significant commercialization milestones.

The Amendment is subject to approval by the TSX Venture Exchange, formal approval from Consenting Holders and the finalization of a supplemental indenture. The Company shall issue a further release once the amendments have been finalized and approved.

PROPOSED PRIVATE PLACEMENT OF EQUITY SECURITIES

The Company also announces its intention to effect a modest private placement of equity securities to certain institutional investors and insiders of the Company (the “Private Placement”), in order to provide working capital to support the production ramp of its new ACC semiconductor products, as well as general corporate purposes. The Company is working with advisors in Canada and the United States in this regard. The Private Placement is expected to close in March 2024, and is subject to receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

Consenting Holders and Board members have indicated that they intend to participate in the Private Placement.

“Our outlook is for revenue growth in the second-half of this year and into 2025, driven by strong adoption of our market-leading ACC semiconductor products”, said Mr. Halim.