Spectra7 Microsystems Inc (QB) (SPVNF) Quote

That was my thought Spectra. Something just doesn't add up after all the great news out of the conferences, especially this.

SAN JOSE, Calif., March 5, 2024 /CNW/ -- (TSXV: SEV) (OTCQB: SPVNF) Spectra7 Microsystems Inc. ("Spectra7" or the "Company"), the leader in high-performance analog semiconductors for broadband connectivity markets, such as AI networks, hyperscale data centers, and AR/VR, announces that its previously demonstrated market-leading performance of 800G Active Copper Cables ("ACCs") embedded with Spectra7 semiconductors has been confirmed by the leading North American AI hyperscale data center switch manufacturer.

"We are gratified that this significant player in the AI hyperscale data center space has confirmed the market-leading performance of our proprietary ACC semiconductor products," said Raouf Halim, CEO of Spectra7. "High speed cables are the vital arteries of AI networks. This paves the way for Spectra7 to be an important supplier to the $3 billion ACC market for hyperscale data centers.1 We expect these products to be in full commercial production and sale in the second half of this year."

Extension of Convertible Debentures

Spectra7 also announces that it has received commitments from holders (the "Consenting Holders") of the requisite 80% of outstanding principal amount of its existing $8.873 million of 14% unsecured convertible debentures (the "Debentures") to extend the maturity of the Debentures from December 31, 2024 to June 30, 2025 (the "Amendment"). As consideration for the Amendment, the Company has agreed to pay a non-convertible extension bonus at maturity to the Debenture holders equal to 1.5% of the principal outstanding on the effective date of the Amendment.

The Consenting Holders confirm that they remain committed to the execution of the Company's roadmap, and believe the extension will provide the runway to reach significant commercialization milestones

I have a house that in my opinion costs 1.5m, but nobody seems to want to buy it! You get the idea…

If their patents are any good and robust enough... purchased by a large player who can monetize them in both a means of production and protection by suing those who infringe - that's their worth along with their team who can assist in rapid product rollout. For all we know management pulled out the.deal last minute as there was another, more appetizing (solid or potential) offer presented (either to their personal and/or retail investors benefit).

If it's VR/AR chip sets they are not worth much

They have about $3m of inventory. What that inventory is made up of, i dont know. But, presumably some of it can be sold to somebody

They do have other products other then 800 g

Re: “but i would expect he has some vested interest in this atleast morally”. There is no morality in play when it comes to money, and we all know that.

Why would one expect orders at this point in time? The qualifications are not complete yet. It takes 6 months, so we are looking at July as the earliest. And this was known when they announced the start of the qualification process in January.

Why would one expect orders at this point in time? The qualifications are not complete yet. It takes 6 months, so we are looking at July as the earliest. And this was known when they announced the start of the qualification process in January.

https://www.bloomberg.com/news/articles/2024-04-27/ai-boom-s-secret-winners-the-companies-expected-to-power-it?utm_source=flipboard&utm_content=topic%2Fnews

I mentioned that, not sure if anyone else did as well.

It was one investor that committed and then backed out.

Someone posted earlier that Ron said that when they gave him a call

YOU DO NOT WAIT TILL YOU ARE DRIVING ON FUMES TO LOOK FOR A GAS STATION.

I agree with most of what you wrote.
So why do you think that someone pulled out?

I really dont think we are done.
I am getting the sense that management and the board never expected to be in the position where they would run out of cash. All was smooth sailing, private placement in play, then everyone got blindsided by one or maybe more investors pulling out of the private placement. The reason for that could be related to s7 or maybe not.
For the board to protect themselves, they had to issue the press release just in case this thing does go belly up. I would imagine that if they never shared the liquidity update and the company randomly went bankrupt, they may be liable as directors for breach of fiduciary duty. Imagine that press release…. Company was finally rebounding in the market and then company announces they are done?
From talking to Dave he seemed very calm and unbothered by the whole situation. Maybe thats because he came out of retirement as an interim cfo and this wont impact him personally at all… but i would expect he has some vested interest in this atleast morally

https://www.thestreet.com/investing/stocks/nvidia-set-to-capture-billions-as-microsoft-google-and-meta-boost-ai-spending?utm_source=flipboard&utm_content=topic%2Ftechnology

Just some small talk and other pointed financial questions… none of which he could answer/disclose

Clever, from your post, "That's about all I will share."
Was there more?

Okay so provide the facts after your headline that "we are done"
Gary, I have no idea what's going to happen but you seem to know for sure.
From reading your post over the months I think you're bipolar, positive, negative, positive......
Again, I have no idea where this is going to land.

Charlie Munger always said ‘ you deserve what you get’

If you pleasure yourself with the suffering from others, karma will come for you.

Don’t be a bad human having the last laugh.

Thx cleveraces for the feedback.
I mentally took a loss here. Anything up from zero is good news. And it looks like they will close the PP next week. Not sure how much money S7 has to have in order to be ready for the second half of this year.

Fingers crossed.

We are done.
Face facts
If they had orders the answer to that question would be yes.

Thanks again Clever!

We don't know what's going on. Take a look at dollars Meta is spending on AI that's here but around the corner. Many commented after the release of the financials but Meta said it's coming and they need to spend.

SEV can't make them move things faster but SEV can be ready for when that time comes.

Alright, so I tried calling Ron to get some information… his cellphone was turned off.

Dave, CFO, on the other hand answered. As expected he wasnt able to share much information.

Some questions I asked that I will share with you all -

I asked him what their current cash position is. He said that as of the last press release they had a little over 2 weeks in the bank. I thus got the impression that their statement was conservative in the press release, so i dont think it will be lights off on Monday.

I asked when we can expect news regarding cash position / private placement. He estimates within the next week.

I asked if they have since received any orders that would help with their liquidity… he wasnt able to comment.

I asked if management and the board still has a commitment to continue operating this company into the future.. his answer was a resounding yes.

Thats about all I will share.

He ended the call with “I hope to share positive news with you soon”

Im sure that will send many into a tailspin

Correct. And this will be the main problem for a while, despite what the cheerleaders of the board tell you. 25 gbps is still sufficient for most applications.

Not yet. They are too ahead of the market

Only if someone orders them,doesn't appear to have any takers.

“Embedded with Spectra7's cutting-edge GC1122 chips, Volex's QSFP-DD High Speed #CableAssemblies soared past industry standards, delivering low pre-FEC bit error rates.”

Gotta be worth something.

Thanks for update.

It is California after all and it is 3 hours behind.

Sadly SEV has every one on ignore except future and future is back to searching for the next SayWhatt?

A friend of mine called the CFO to see what is going on. CFO told him its management intention to continue the business and that they plan on getting financing whether its through the private placement, which is still in play, or by other means.

Friend also mentioned that the CFO sounded like he was sitting at home on his couch…

Hi is long gone now. As it was supposed to happen. Karma is chasing him…

"Hahahaha there is no way Future will be able to keep his hands off the keyboard, that's a guarantee!"

So far Future's kept his word.

Life support is nearing its end. Few more days.

No, SEV123, the entertainment is mine and Jack’s in this case. It entertains me to watch your replies.

It seems he has got a 2nd mortgage against his property.

Nothing better than living in a couple of posters heads rent free. Easy casting some bait and having them bite. LOL. Posting and un-posting is fishing rod.

Yes, it will shoot up. I hope you are buying all the shares you can.

I agree Clever. I don’t know what is going to happen but I sure hope we ALL come out of this okay.

Money is to be made when there is blood in the streets.
This thing is going to shoot up like a rocket once they announce financing. Atleast 3x from positive news.
Its easy to become paranoid when we are in the dark for what seems like such a long period of time since their unexpected news. But looking through the DD again, it makes no sense for this company to die now…

Hey SEV123, resorting to calling names is a clear indication of losing control. Grasping at straws I guess.

How does it feel to be so wrong and still be in denial? I lost and accepted it.

This is just like the election being stolen conspiracy.. lol

Sadly, we most likely have a few more trading days before we find out if it's lights out or not.
At the very least many here won't have to put up with the angst of other posters.

What is the A/S and will it be max out?

I believe they did step up. We don't know who committed and then backed out. Ron I believe has over $2.5 million u.s. invested.
In tech for both management and employees it's all about stock options and that's what's suppose to keep them hungry, motivated.

Normally, the directors (and higher) plus whoever owns 10%+ are the insiders. I have not heard about other categories.

I would include those that were approached for the private placement to be “insiders”. They may not necessarily be employed by S7. May include the institutional investors, etc etc

Insiders job is not to buy but to get SEVs to fund their salaries!!

I hope SEV leaves some shares for others!! Next time don’t put everyone with a different opinion on ignore!!! At least take away some lessons!!