Mr. Raouf Halim reports

SPECTRA7 COMPLETES PRIVATE PLACEMENT

Spectra7 Microsystems Inc. has closed the final tranche of its previously announced private placement of units consisting of one common share of the company and one-half of one common share purchase warrant. The aggregate gross proceeds of the private placement, inclusive of the proceeds from the first tranche which closed on June 27, 2017, and $337,000 of subscriptions from the chief executive officer and certain directors of the company, is $1.4-million. This closing follows the previously disclosed $4.6-million bought-deal public offering of units closed by the company on June 27, 2017, for aggregate gross proceeds of $6.0-million. The net proceeds from the financings will be used for research and development and general corporate purposes.

"Along with our continuing efforts to reduce operating expenses and grow revenues, these financings strengthen our balance sheet and allow us to develop our next generation of products," said Spectra7 chief executive officer Raouf Halim. "In the meantime, the virtual, augmented and mixed reality markets continue to adopt our technology, and the company is experiencing strong market traction with data centre operators."

The company continues to advance the sale of its non-core television tuner/demodulator and RF patents. Currently there are multiple parties doing due diligence. Although the company cannot guarantee that this sale will proceed or provide a timeline, its discussions with these potential purchasers suggest that the previously disclosed estimate of $4-million plus potential future royalties remains a good target value for these assets.

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.

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