12:18 PM EDT, 05/06/2024 (MT Newswires) -- Spectra7 Microsystems ( SPVNF ) said Monday it is raising up to $10.2 million in the first tranche of a private placement, with closing expected about May 8.

The analog semiconductor company said it may complete subsequent tranches of the private placement to increase the proceeds to up to C$24 million.

Spectra7 plans to use the proceeds for working capital and general corporate purposes. The company said the funds would improve its capital structure, allowing it to support hyperscaler customer needs.

The offering comprises 102-million units priced at $0.10. Each unit consists of either one share and one warrant or one pre-funded common share purchase warrant and one warrant if the share ownership threshold would be exceeded by a subscriber.

Each warrant can be exercised immediately at $0.11 per share.

Spectra7 also outlined certain amendments to its $8.873 million in 14% unsecured convertible debentures and its existing $2.828 million in 9% unsecured convertible debentures.

"We are pleased that the anticipated conversion of the outstanding debentures into common Shares and warrants, together with the new issuance of units, will simplify the capital structure of the company, eliminate interest payments on debentures, and provide additional capital for operations," Chairman Ron Pasek said.

Spectra7's shares were last seen down C$0.01 to C$0.12 on the TSX Venture Exchange.

Price: 0.12, Change: -0.01, Percent Change: -7.69