Spectra7 Microsystems Inc. Announces Closing of $4.6 Million Bought Deal Financing and First Tranche of Private Placement of $1.3 Million

SAN JOSE, CALIFORNIA--(Marketwired - June 27, 2017) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.

(TSX:SEV) Spectra7 Microsystems Inc. ("Spectra7" or the "Company") is pleased to announce that it has closed its previously announced bought deal offering of 11,500,000 units ("Units") at a price of $0.40 per Unit, including the full exercise of the over-allotment option, for aggregate gross proceeds of $4,600,000 (the "Public Offering"). The Public Offering was underwritten by a syndicate of underwriters led by Canaccord Genuiy Corp. and including Eight Capital and Echelon Wealth Partners Inc. (the "Underwriters"). In addition to the Public Offering, the Company also announces it has closed the first tranche of its private placement of Units previously announced on June 7, 2017 (the "Private Placement" and, together with the Public Offering, the "Offerings") pursuant to which it has issued 3,280,750 Units for additional gross proceeds of $1,312,300, including subscriptions by the CEO and certain directors of the Company.

Each Unit issued pursuant to the Offerings consists of one common share of the Company ("Common Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to acquire one Common Share at an exercise price of $0.55 per Common Share for a period of two years following the closing of the Offerings. 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 $0.85 for any 10 consecutive trading days following the date that is four months and one day after the issuance of the Warrants. The securities issued pursuant to the Private Placement are subject to a statutory hold period of four months and one day in accordance with applicable Canadian securities law.

In consideration for the services provided by the Underwriters, the Company paid the Underwriters a cash commission and issued an aggregate of 690,000 non-transferable compensation options to the Underwriters (the "Compensation Options"). Each Compensation Option is exercisable into one Common Share at a price of $0.40 for a period of 24 months from the date hereof.