Spectra7 Microsystems Inc. Announces $4.0 Million Bought Deal Financing

Spectra7 Microsystems (TSX:SEV) has announced it has entered into an agreement with underwriters led by Canaccord Genuity to purchase on a bought deal basis 10 million units of Spectra7 at $0.40 each for gross proceeds of $4 million.
As quoted in the press release:

Each Unit shall consist 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 will entitle 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 Offering (“Closing”).  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 closing of the Offering.
The Company will grant the Underwriters an option to acquire up to an additional 15% of the total number of Units sold under the Offering for over-allotment and market stabilization purposes, which option is exercisable in whole or in part at the discretion of the Underwriters for a period of 30 days from and including the Closing.
The net proceeds from the Offering will be used for research and development, interest repayment and for working capital and general corporate purposes.
The Units will be offered by way of a short form prospectus to be filed with the securities commissions and other similar regulatory authorities in each of the provinces of Canada (except Québec), pursuant to National Instrument 44-101 Short Form Prospectus Distributions, and in those jurisdictions where the Offering can lawfully be made including in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended.

Click here to read the full press release.