Vancouver, BC, February 11, 2005--Spectrum Signal Processing Inc. today announced that it will delay its proposed Cdn$9 million private placement of equity securities.
"While we have witnessed strong interest in our private placement, we believe that at current pricing levels the dilutive impact on our current shareholders would exceed the benefits," stated Pascal Spothelfer, Spectrum's President and CEO. "The fundamental drivers behind our financing were strategic in nature. These include enhancing Spectrum's balance sheet and pursuing certain non-organic growth opportunities. These rationales remain valid. Our strong cash balance at December 31, 2004, however, provides us with the flexibility to resume a financing at a more appropriate valuation level in the future."
ABOUT SPECTRUM SIGNAL PROCESSING INC.
Spectrum Signal Processing Inc. (NASDAQ: SSPI / TSX: SSY) is a leading supplier of software defined platforms for defense electronics applications. Spectrum's products and services are optimized for military communications, signals intelligence, surveillance, electronic warfare and satellite communications applications. Spectrum's integrated, application-ready products provide its customers with compelling time-to-market and performance advantages while mitigating program risk and cost parameters. Spectrum Signal Processing (USA) Inc., based in Columbia, Maryland, provides applications engineering services and modified commercial-off-the-shelf platforms to the US Government, its allies and its prime contractors. For more information on Spectrum and its flexCommý product line, please visit www.spectrumsignal.com.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the ýUS Securities Actý) or any state securities laws and may not be offered or sold within the United States or to US persons unless registered under the US Securities Act and applicable state securities laws or an exemption from such registration is available.
This news release contains forward-looking statements related to Spectrum Signal Processing Inc. These 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, including the timely development and acceptance of Spectrumýs new products, the impact of competitive products and pricing, availability of components, changing market conditions and the other risks detailed from time to time in other company filings. Actual results may differ materially from those projected. These forward-looking statements represent the companyýs judgment as of the date of this release and Spectrum may or may not update these forward-looking statements in the future. Readers are referred to Spectrumýs assumptions and risk factors set out in the most current Form 20-F filed with the Securities and Exchange Commission and the British Columbia Securities Commission.
ý flexComm is a trademark of Spectrum Signal Processing Inc.
For more information, please contact:
Brent Flichel
Chief Financial Officer
+1-604-421-5422
Brent_Flichel@spectrumsignal.com