Any development with regards to the raising of fresh capital almost always leads to far greater attention for a company, and hence, it’s likely that Spectra7 Microsystems Inc. (OTC: SPVNF) is going to be in focus this morning. The company is a leading player in analog semiconductors, which deliver high performance and are meant for AR/VR, broadband connectivity, artificial intelligence networks, and hyperscale data centers.
This past Friday, the company announced that it had been successful in completing the first tranche of a non-brokered private placement to some institutional investors, other variants of investors, and company insiders. Each unit offered by the company was either made up of one common share in Spectra7 Microsystems and one common share purchase warrant, or if the Share Ownership Threshold was exceeded by a subscriber, then the unit was to consist of one pre-funded common share purchase warrant and another warrant.
The units were offered at a price of $0.10 each. Spectra7 Microsystems issued a total of 107,683,090 units and managed to generate as much as $10.7 million in the first tranche of the above-mentioned private placement. The holders could exercise the warrants immediately and purchase either one common share in the company for $0.11 or, if the conditions are fulfilled, a pre-funded warrant up until May 11, 2029.
However, it was also noted that the expiration date of the warrant could be changed by the company at any time prior to the expiration date if the closing price of the common shares on the TSX Venture Exchange stood at $0.33 for 10 straight trading days.
Additionally, certain trading volume thresholds would also have to be met during the 10 consecutive trading days. In light of the closure of the first tranche of the private placement, the stock could be worth watching this week.
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