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RELEASE DATE: September 8, 2000
CONTACT: Karen Elliott, Spectrum - Investor Communications, 604-421-5422
Email: [email protected]
SPECTRUM SIGNAL PROCESSING UNDERWRITER EXERCISES
OVER-ALLOTMENT OPTION
BURNABY, B.C., CANADA - SEPTEMBER 8, 2000 - Spectrum Signal Processing Inc.
(NASDAQ: SSPI / TSE:SSY), a leader in high-density signal processing systems,
today announced that the underwriter of the Company's recent financing has
exercised its over-allotment option in full to sell an additional 352,940
special warrants priced at Cdn$ 4.25 (US$ 2.86). The exercise of the
over-allotment option brings the total gross proceeds of the offering to
Cdn$ 7,499,996 (US$ 5,052,000).
Spectrum intends to use the proceeds to accelerate its expansion into the
fast-growing digital wireless and wireline telecommunications infrastructure
markets, and for general corporate purposes.
Under the terms of the financing, announced on August 29, 2000, each Spectrum
special warrant is exchangeable for one unit, which consists of one common share
and one common share purchase warrant. The common share purchase warrant has an
exercise price of Cdn$ 4.75 (US$ 3.20) and a term of 18 months from the date of
issue.
To qualify the distribution of the common shares issuable upon the exercise of
the special warrants, Spectrum has agreed to use its best efforts to clear a
prospectus with relevant Canadian securities commissions within 120 days of the
transaction closing date. This transaction is subject to applicable Canadian
regulatory approval.
THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT AND MAY NOT
BE OFFERED OR SOLD IN THE UNITED STATES UNLESS SO REGISTERED OR UNLESS SUBJECT
TO AN APPLICABLE EXEMPTION FROM REGISTRATION UNDER THE ACT.
Spectrum Signal Processing is a leader in signal processing computer systems,
designing sophisticated hardware and software solutions for customers in three
key markets - Network Solutions, Wireless Systems and Sensor Systems. Spectrum
can be found on the web at http://www.spectrumsignal.com and is located at One
Spectrum Court, #200 - 2700 Production Way, Burnaby, B.C., Canada. Ph (604)
421-5422; fax (604) 421-1764.
This news release contains forward-looking statements related to filing of a
prospectus related to the financing in question and Spectrum's use of funds.
These forward-looking statements are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements involve risks and uncertainties and actual results may differ
materially from those projected. These forward-looking statements represent the
company's judgment as of the date of this release. The company may or may not
update these forward-looking statements in the future.
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