Mr. Dave Mier reports

AI HYPERSCALE SWITCH MANUFACTURER CONFIRMS MARKET-LEADING PERFORMANCE OF SPECTRA7- ENABLED 800G ACTIVE COPPER CABLES

Spectra7 Microsystems Inc.'s previously demonstrated market-leading performance of 800G active copper cables (ACCs) embedded with Spectra7 semiconductors has been confirmed by the leading North American AI (artificial intelligence) hyperscale data centre switch manufacturer.

"We are gratified that this significant player in the AI hyperscale data centre space has confirmed the market-leading performance of our proprietary ACC semiconductor products," said Raouf Halim, chief executive officer 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 centres. 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 of the requisite 80 per cent of outstanding principal amount of its existing $8,873,000 of 14 per cent unsecured convertible debentures to extend the maturity of the debentures from Dec. 31, 2024, to June 30, 2025. 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 per cent 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 road map 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, 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 advisers 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.

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.

We seek Safe Harbor.