TSX Venture Exchange Symbol: ETE.P
TORONTO, Aug. 14, 2012 /CNW/ - Chrysalis Capital VIII Corporation ("Chrysalis VIII" or the "Corporation") is pleased to announce that Fresco Microchip Inc. ("Fresco") and RedMere Technology Limited ("RedMere", together with Fresco, "Spectra7") have recently completed a non-brokered private placement of convertible promissory notes for gross proceeds of approximately $11.1 million from respected venture capital firms Celtic House Venture Partners ("Celtic House"), Ventures West Capital Ltd. ("VW8") and EdgeStone Capital Partners. Pursuant to the terms of the previously announced definitive acquisition agreement (the "Acquisition Agreement") among Chrysalis VIII, Spectra7 and the principal shareholders of Spectra7, Spectra7 agreed to complete a financing of not less than $4,000,000 within 21 days following the signing of the Acquisition Agreement.
"We're delighted this first round of funding was met with such enthusiasm," commented Tony Stelliga, CEO of RedMere and Spectra7. "The oversubscription is a strong show of support from existing investors and validates our vision of delivering low cost, high bandwidth, agile semiconductor devices for the mobile internet market." He continued, "The completion of this financing allows us to focus on key value creating milestones as we move closer to being publicly traded on the TSX Venture Exchange."
The proceeds from this financing will be used to increase production within Fresco and RedMere's existing product portfolios to meet demand, complete the integration of Fresco and RedMere into Spectra7 and to fund research and development of new products that Spectra7 anticipates launching in the near term.
"By combining Fresco and RedMere's best-in-class technologies, we believe Spectra7 will be ideally positioned to attack the high growth mobile internet market," commented Brian Antonen of Celtic House. "We're pleased to participate in this financing and are excited by the immense growth opportunities that lie ahead."
ABOUT CHRYSALIS CAPITAL VIII CORPORATION
Chrysalis Capital VIII Corporation is The Chrysalis Capital Group Inc.'s ("TCCG") eighth capital pool company ("CPC"). TCCG is entirely focused on generating superior shareholder returns through the creation of a series of unique CPCs. To date, TCCG has created eight Chrysalis branded CPCs and has assisted in the creation of four additional CPCs under TCCG's partners program. For more information about TCCG, please visit www.tccg.ca.
ABOUT SPECTRA7 MICROSYSTEMS INC.
Upon the proposed combination of Fresco and RedMere, Spectra7 will be a high performance analog semiconductor company focused on delivering unprecedented bandwidth for mobile infrastructure and consumer products. Spectra7 is being formed to address the exponential demand for more bandwidth and lower costs in mobile and internet infrastructure equipment, including handsets, tablets, base stations and microwave backhaul systems. Spectra7 is expected to be positioned to provide new system level analog components that will deliver unprecedented bandwidth over fiber and copper links and address the wireless bandwidth bottlenecks in the mobile internet.
ABOUT FRESCO MICROCHIP INC.
Fresco is a leader in RF, analog and digital semiconductors. The company's products deliver Value Through Innovation™ by offering significantly lower system solution costs at optimal performance. Fresco's patent-pending technology transcends a broad range of consumer devices creating a fundamental paradigm shift in the television market. Fresco's customers include top tier tuner manufacturers who supply leading consumer electronic brands.
Fresco is currently a private company with lead investors Celtic House and VW8. The company is headquartered in Toronto, Canada with design centers both in head office and Irvine, California.
ABOUT REDMERE TECHNOLOGY LIMITED
RedMere provides complete active-cable solutions to cable industry leaders and manufacturing partners. In a world where connection speed increases, RedMere enables easy to use, high quality, smart connectivity for The Home, On the Move and The Office.
These new active cable systems deliver the ultimate in compact digital connectivity over HDMI, DisplayPort and USB for Video and Still Cameras, Smartphones, HDTV, Blu-Ray DVD, PS3 and Xbox, as well as enterprise solutions using Infiniband and PCI Express.
RedMere is currently a private company with lead investors Celtic House Venture Partners and EdgeStone Capital Partners. The company is headquartered in Cork, Ireland.
Completion of the qualifying transaction (the "Proposed Transaction") is subject to a number of conditions, including but not limited to, TSX Venture Exchange ("TSX-V") acceptance. There can be no assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the prospectus to be prepared in connection with the Proposed Transaction, any information released or received with respect to the proposed transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a CPC should be considered highly speculative.
The TSX-V has in no way passed upon the merits of the Proposed Transaction and has neither approved nor disapproved the contents of this press release. Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
Certain information in this press release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Corporation assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Corporation. Additional information identifying risks and uncertainties is contained in the Corporation's filings with the Canadian securities regulators, which filings are available at www.sedar.com.
SOURCE: Chrysalis Capital VIII Corporation
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