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Spectra7 Microsystems Inc. Capital/Financing Update 2021

Dec 14, 2021

46740_rns_2021-12-14_800559c0-f367-4933-8d48-826a4866ce6c.pdf

Capital/Financing Update

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FORM 51-102F3

MATERIAL CHANGE REPORT

Item 1 Name and Address of Coman

Item 2
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Spectra7 Microsystems Inc. (the “Company”)
181 Bay Street, Suite 1800
Toronto, Ontario
M5J 2T9
Date of Material Change
December 9, 2021
  • Item 3 News Release

A press release disclosing the material change was disseminated on December 13, 2021 through Cision Newswire. Item 4 Summary of Material Change On December 9, 2021, the Company entered into a second supplemental convertible debenture indenture to amend the conversion price of the principal amount of the Company’s existing 7% unsecured convertible debentures from $5.00 per common share to $2.50 per common share during the period from January 9, 2022 to July 9, 2022.

Item 5 Full Description of Material Change

See above and the press release dated December 13, 2021, attached hereto as Schedule “A”. Item 6 Reliance on subsection 7.1(2) of National Instrument 51-102

Confidentiality is not requested.

Item 7 Omitted Information

No information has been omitted in respect of the material change.

Item 8 Executive Officer

The following executive officer of the Company is knowledgeable about the material change disclosed in this report.

Bonnie Tomei, Chief Financial Officer, Telephone: (669) 212-1089

Item 9 Date of Report December 14, 2021

Schedule “A”

Spectra7 Announces Completion of Debenture Amendments

San Jose, CA December 13, 2021 – (TSXV:SEV) (OTCQB:SPVNF) Spectra7 Microsystems Inc. (“ Spectra7 ” or the “ Company ”), a leading provider of high-performance analog semiconductor products for broadband connectivity markets, announces that the Company has entered into a second supplemental convertible debenture indenture (the “ Supplemental Indenture ”) on December 9, 2021 to bring into effect the previously announced amendments to the Company’s existing 7% unsecured convertible debentures (the “ Debentures ”). The Supplemental Indenture amends the conversion price of the principal amount of the Debentures from $5.00 per common share to $2.50 per common share during the period from January 9, 2022 to July 9, 2022 (the “ Amendment ”).

The Debentures are currently convertible at a price of $2.50 per common share until January 8, 2022. As a result of the Amendment, the conversion price will remain at the current price of $2.50 per common share until maturity. The interest rate and other features of the Debentures are not being amended.

ABOUT SPECTRA7 MICROSYSTEMS INC.

Spectra7 Microsystems Inc. is a high performance analog semiconductor company delivering unprecedented bandwidth, speed and resolution to enable disruptive industrial design for leading electronics manufacturers in virtual reality, augmented reality, mixed reality, data centers and other connectivity markets. Spectra7 is based in San Jose, California with a design center in Cork, Ireland and technical support location in Dongguan, China. For more information, please visit www.spectra7.com.

Neither the TSXV nor its regulation services provided (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

For more information, please contact:

Matt Kreps/Jim Fanucchi Darrow Associates 214-597-8200 [email protected]

Spectra7 Microsystems Inc. Bonnie Tomei Chief Financial Officer 669-212-1089 [email protected]

Spectra7 Microsystems Inc. John Mitchell Public Relations 650-269-3043 [email protected]