#USA #San Jose #Spectra7 Microsystems #Parade Technologies #asset sale

Spectra7 Microsystems Concludes Asset Sale to Parade Technologies

San Jose, California-based Spectra7 Microsystems Inc. has recently wrapped up an important asset sale to Parade Technologies, marking a pivotal moment in its corporate strategy. This decision follows an asset purchase agreement dated March 7, 2025, which has now been executed, resulting in a cash transaction worth approximately US$9 million, or about CDN$12.4 million.

Details of the Sale

The sale encompasses nearly all of Spectra7's assets, including intellectual property, product designs, inventory, and related items. Upon the conclusion of the sale, Parade Technologies made a net cash payment of US$6.44 million (around CDN$8.9 million) to Spectra7. This amount deducted the pre-existing bridge loans extended by Parade to Spectra7, plus an escrow amount specially reserved to address any potential indemnity claims for up to one year.

This decision to monetize these assets comes as part of Spectra7's broader intent to optimize its financial positioning. By streamlining its operations and focusing on core competencies, Spectra7 hopes to provide significant returns to its shareholders through special distributions derived from the sale proceeds.

Special Distributions for Shareholders

In line with the closure of the asset sale, Spectra7 has pledged to allocate all its net proceeds obtained from this transaction to its shareholders. This initiative involves a special distribution of cash to shareholders as well as the issuance of non-interest bearing contingent value rights (CVRs). Each shareholder, as of the record date of April 28, 2025, will receive a CVR for every common share or pre-funded warrant held.

The cash distribution is estimated to total around US$1.07 million, equating to approximately US$0.0039 per share, anticipated within two weeks post-closing. If all escrow funds are released after one year, an estimated US$1.8 million or US$0.0065 per share may follow to CVR holders.

Delisting from Stock Exchanges

The implications of this sale extend beyond immediate financial distributions. Spectra7 has also initiated the process of delisting its common shares from the TSXV, underlining the company's strategic shift towards focusing on long-term value creation. The shareholders have already expressed support for this move during the annual meeting held on April 17, 2025, with the delisting expected around April 28, 2025.

About Spectra7 Microsystems

Founded to lead in high-performance analog semiconductors, Spectra7 Microsystems caters primarily to the rapidly evolving segments of broadband connectivity, hyperscale data centers, and spatial computing. With operational bases in San Jose, California, and additional research and support facilities in Ireland and China, the company is strategically positioned for innovation.

Looking Ahead

This asset sale not only optimizes Spectra7’s financial standing but pushes it towards a brighter future in semiconductor technology. The strategic decisions made now are designed to enhance shareholder value and streamline operational goals for sustained growth.

As this narrative unfolds, stakeholders will be keeping a close watch on how these transitions will shape the trajectory of Spectra7 Microsystems and its position in the semiconductor marketplace.