Thursday, June 29, 2017

Spectra7, providing chips for high-speed connectivity, raises $4.6m

Spectra7 Microsystems of San Jose, California, a developer of high performance analogue semiconductors, announced that it has closed its previously announced bought deal offering of 11,500,000 units at a price of 40c per unit, including the full exercise of the over-allotment option, for aggregate gross proceeds of $4.6 million.

Spectra7 stated that the public offering was underwritten by a syndicate of underwriters led by Canaccord Genuiy and including Eight Capital and Echelon Wealth Partners.

In addition to the public offering, the company announced that it has closed the first tranche of its private placement of units, as previously announced on June 7th, pursuant to which it issued 3,280,750 units for additional gross proceeds of $1.31 million, including subscriptions by its CEO and certain directors of the company.

Each unit issued through the offerings comprises one common share and one-half of a common share purchase warrant, with each warrant entitling the holder to acquire one common share for 55c per share for a period of two years after closing of the offerings.

Spectra7 stated that the net proceeds from the offerings will be used to fund R&D and for working capital and general corporate purposes.

Separately, the company announced amendments to its $6.50 million senior secured term loan facility with MidCap Financial. The amendments include extending the commencement date for principal payments under the loan facility by a year to June 1, 2018, and the option to extend the maturity date of the facility by a further year upon satisfaction of certain conditions.

In relation to the amendments, Spectra7 has issued warrants to purchase up to 750,000 common shares, with each warrant exercisable for a period of five years into one common share at a price of 39c.

For its most recent quarter ended March 31, 2017, Spectra7 reported revenue of $2.7 million, up 8% versus $2.5 million a year earlier, with gross margin as a percentage of revenue for the quarter at 60%, flat sequentially.


* In January, Spectra7 demonstrated what it claimed as the first QSFP28 Double Density (QSFP28-DD) active copper cable (ACC) integrating its new GaugeChanger Plus GC2502 silicon. It also stated it would begin sampling GaugeChanger Plus QSFP28-DD active copper modules to data centre cable assembly companies during the quarter.

Using the linear design of its GC2502, Spectra7 noted that the modules can support both NRZ and PAM4 signalling, enabling 200 or 400 Gigabit Ethernet transmissions over the same cable.

* Spectra7 also announced sampling of IEEE COM-compliant SFP28 and QSFP28 active copper modules to Tier 1 cable assembly and data centre customers in North America and Asia. It noted the modules were available for evaluation and qualification by customers such as Google, Facebook, Microsoft, Amazon, Baidu and Alibaba, as well as data centre equipment manufacturers such as Cisco, HP, Dell and Hauwei.


* Spectra7 is an analogue semiconductor company delivering solutions enabling high bandwidth, speed and resolution for electronics manufacturers addressing broadband connectivity markets. Based in San Jose, the company has design centres in Markham, Ontario, Cork, Ireland and Little Rock, Arkansas.

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