Mr. Sean Peasgood reports

SPECTRA7 MICROSYSTEMS INC. ANNOUNCES $4.0 MILLION BOUGHT DEAL FINANCING

Spectra7 Microsystems Inc. has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. to purchase, on a bought deal basis, 10 million units of Spectra7 at a price of 40 cents per unit for gross proceeds to the company of $4.0-million.

Each unit shall consist of one common share of the company and one-half of one common share purchase warrant. Each warrant will entitle the holder to acquire one common share at an exercise price of 55 cents per common share for a period of two years following the closing of the offering. The expiry date of the warrants may be accelerated by the company at any time if the volume weighted average trading price of the common shares on the facilities of the Toronto Stock Exchange (or such other exchange on which the common shares trade) is greater than 85 cents for any 10 consecutive trading days following the date that is four months and one day after the closing of the offering.

The company will grant the underwriters an option to acquire up to an additional 15 per cent of the total number of units sold under the offering for overallotment and market stabilization purposes, which option is exercisable in whole or in part at the discretion of the underwriters for a period of 30 days from and including the closing.

The net proceeds from the offering will be used for research and development, interest repayment, and for working capital and general corporate purposes.

The units 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 Quebec), pursuant to National Instrument 44-101, short form prospectus distributions, and in those jurisdictions where the offering can lawfully be made, including in the United States, on a private placement basis, pursuant to exemptions 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 June 19, 2017, 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.

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 broadband connectivity markets. Spectra7 is based in San Jose, Calif., with design centres in Markham, Ont., Cork, Ireland, and Little Rock, Ark.

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