Author: TSX Stocks

Exciting listing on JSE’s AltX poised to give investors pure copper play

JOHANNESBURG (miningweekly.com) – The reverse listing of Big Tree Copper into SHiP Copper Company on the AltX of the Johannesburg Stock Exchange in October is expected to raise between R60-million and R250-million for the ramping up of combined production to 10 000 t/y of copper in the next three years.

SHiP, run by Shirley Hayes, is effectively taking over Big Tree Copper, run by Jan Nelson, resulting in SHiP continuing to operate and develop copper mines and Big Tree Copper continuing to recover copper from hard-rock copper dumps and produce copper plate, with all assets Northern Cape-based.

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Big Tree Copper has a 15- to 20-year life just on the material being processed at current production rates. In addition, it is looking at developing the Carolusberg tailings dam, which has got about 40 000 t of recoverable copper in it that was mined in the old days by Newmont.

“We want to build a company in the next three years to produce 10 000 t of copper per annum. That will see us having at least two operations that will be treating or producing copper from oxides and we want to have at least the Rietberg and the Jubilee openpit going so that we’ll be producing copper from those two mines as well. If we can achieve that, it will be a very good outcome for us, our shareholders and also for the communities in the area,” Nelson told Mining Weekly in a Zoom interview. (Also watch attached Creamer Media video.)

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Big Tree Cooper produces and exports one-meter by one-meter copper plate that is 6 cm thick. Each plate weighs about 38 kg per plate and contains 99.89% copper in an area where the copper is very pure.

“Shareholders will get exposure to a copper company with great growth,” said Nelson, whose company focuses on the restoration of the natural habitat in South Africa’s Northern Cape town of Nababeep, where twentieth-century copper mining negatively impacted an ecologically sensitive environment. 

Through the development of its own technology, the firm has commenced recycling previously dumped and mining waste to produce premium grade copper. This is done through a technologically advanced metallurgical process that delivers commercial viability while restoring the original landscape. 

Big Tree Copper is also philosophically bound to core principles of the United Nations Sustainable Development Goals and, after launching operations in November 2021, plans to engage with the community in revitalising aspects of the local socio-economic environment, decimated when mining operations ceased a decade ago, on a sustainable basis.

Mining Weekly put these questions to Nelson:

Big Tree Copper has been producing A-grade copper through a solvent extraction electrowinning (SX-EW) plant designed and built very innovatively by yourselves. What is your latest level of monthly production and is it meeting your targets?  

Nelson: Yes, it has. We’re currently building up from 30 t of copper production per month to about 90 t of copper production a month in the next two to three months. We’re on line with our production targets, so we’re quite happy with what we’ve achieved.

How much power do you consume and do you have any plans to self-generate your own clean power?

Certainly, with load-shedding Stage 6 that we’ve had, our plan is to look at that once we’ve listed in October to raise money for our own solar plant. We’ve currently got three diesel generators that are backup whenever we’ve got power outages and we’re now load-shedding 10 hours to 12 hours a day and that just isn’t sustainable for a small business like ours, so I think we’re going to have to go the route of raising money and building our own clean power plant for the future.

How green and clean do you intend being?

As green as we can. Wherever we think there’s an opportunity to improve, or to make use of clean energy, I think we will. The company is founded on that fact that we clean old mine dumps and restore the old excavations with backfill that’s neutralised, and produce copper plates – that’s part of our DNA and wherever we can, we will drive that.

How is your offtake agreement going with Noble Metals?

That’s in place and it’s running fine.

Is the business financially strong?

Yes, it is. Our costs are quite low because there’s no mining involved, so we’re making a profit and in the same instance, we’ve been looking at optimising and growing the business.

How many people do you employ and how is the local community benefiting from your venture?

We’ve got about 160 people that currently work for us and as we scale up, that figure will probably rise to about 300 to 400 people over the next two years. There are about 5 000 to 6000 people that live in Nababeep. There’s about a 90% unemployment rate, so we’ve made quite a big impact, although we’re a small business, by giving these people jobs, and there’s a lot of ancillary businesses that have developed as a result of our activity, so I think it’s made a huge impact in an area where there hasn’t been employment, or any prospect of economic development, so we’re very proud of what we’ve done there.

How much valuable material is there in the area and do you foresee many other dump mining possibilities?

We’ve got about a 15- to 20-year life just on the material we’re processing at our current production rates. In addition, we’re looking at the Carolusberg tailings dam, which has got about 40 000 t of recoverable copper in it that was mined in the old days by Newmont. That is an expansion area we’re looking at – it will further increase the life. Then, we are looking to list in October where we are part of a reverse takeover by the SHiP Mining Company and SHiP will bring a lot of openpit material to our current oxide production as well.

Are your agricultural plans still in place?

Yes. We’re looking at the water. We’ve done all the studies. There’s about half a gram of copper per litre of water and we’re looking to extract that as well and then we’ll have a lot of clean water available every month and that we’re looking to apply to agricultural projects in the area, which will create further employment.

And now for the big issue, your listing. Where and why are you listing and will you be raising capital in listing?

We’re quite excited about that. That’s part of the reverse takeover with SHiP Mining, which will make us a company that will, in the next three years, ramp up production from the current 1 500 t of copper to 10 000 t of copper per annum, so we’re looking to list on the AltX of the Johannesburg Stock Exchange and we will be raising anywhere between R60-million and R250-million to develop some of the mining projects in SHiP when we move forward, so very excited about that.

Give me more about SHiP and more background into this whole wonderful enterprise, where you didn’t actually need a mining licence but could go ahead with other ways of getting permission to mine?

That’s correct. Current operations don’t fall under the Mineral and Petroleum Resources Development Act (MPRDA) because we’re dealing with movable rock. But in terms of the reverse takeover, SHiP has got ten mines that it can develop in about 60 prospects. SHiP is run by Shirley Hayes and SHiP is effectively taking us over. They bring a lot of production and in terms of developing those mines, we will fall under the MPRDA. Big Tree Copper, which will change its name to Copper 360, will be two businesses. One business that will do copper mining and the other business that will do the rock moving and retreatment as we’re doing now, but it’ll make us probably one of South Africa’s biggest midtier copper producers, if not the only one, so I think that bodes very well for the area and for us.

Why is copper such a good metal to be in?

There’s a big drive around electric vehicle (EV) development but if we EVs, just in terms of all the infrastructure upgrades that are taking place in America, in Europe, you need copper for all of that infrastructure development, and there just isn’t enough copper being produced in the world, so that is good for companies like ourselves which are producing copper. If you then on top of that add the EVs, then it really is just a good space to be in. Copper has been under a bit of pressure, but that’s mainly been as a result of the lockdown in China. But we’re expecting the prices to go back to the $10 000/t to $12 000/t level.

What has happened to the Canadian link that you had?

TSX Venture Exchange-listed Handa Mining Corporation was one of the initial founders of Big Tree Copper, and they are still a 10% to 12% shareholder in Big Tree Copper, but they will just remain a passive shareholder. They’re not actively involved in the growth of the business.

When you list on the AltX of the JSE, under what name will you be listed?

We’re planning to list by the beginning of October, obviously subject to the process we have to go through at the Johannesburg Stock Exchange, because we have to submit all our documents and that can take a little bit longer, but we comfortably expect to list by the beginning of October. We did look at the Cape Town Stock Exchange, but at the moment it’s just – and I think it will change –  the JSE provides a much easier tradable platform in terms of the investors that invest in ourselves, and therefore we’ve chosen to go that route, because liquidity will be important for the company. The reason we’ve also chosen to list is that Coronation is a shareholder and one of the conditions of their investment in us was that we would list but we would also like the listing because it gives us an additional platform to raise capital to develop our mining operations with the reverse takeover that SHiP’s doing, and that you only get three institutions and the institutions do want you to be listed.

Have you sorted out in advance who’s going to take shares or will there be a retail element that will develop to get shares in your business?

We’ve done quite a bit of work on that and we’ve got some plans ready to build up a retail base as well. What we’ve realised is there’s a lot of people who want to invest in copper, but there’s no copper company that they can invest in, so we think we’ll garner quite a strong retail base as well.

What is your vision?

We want to build a company in the next three years to produce 10 000 t of copper per annum. That will see us having at least two operations that will be treating or producing copper from oxides and we want to have at least the Rietberg and the Jubilee openpit going so that we’ll be producing copper from those two mines as well. If we can achieve that, that will be a very good outcome for us, our shareholders and also for the communities in the area.

But there’s also that ‘b’ word, beneficiation. I mean you came in with this innovative way of processing the copper. How successful has that been and is it different to what we know from SX-EW?

It’s not that different from how other major producers do it but we’ve had a few tweaks. We, for example, I think are the only operation in the world that runs a filter press in addition to our solvent extraction. We’ve just with BASF implemented the testing of a new programme on the solvent extraction, which is a world first. It’s a programme that will help predict how your SX behaves and how you can optimise it, and if that’s successful, that that will actually be rolled out across the world.

What will that do to the copper plate that you produce for export?

We produce one-meter by one-meter copper plate that’s approximately 6 cm thick. They weigh about 38 kg per plate, and it’s A-grade copper, so it’s 99.89% pure copper. The copper in that area is very pure. There are no additional metals in the copper.

Is BASF’s involvement only as a developer of a programme?

BASF is developing this special programme on our plant. They’ve asked to test this programme on our plant, which is quite great for us, and if that works, and it looks like it will, then that will be rolled out to any other businesses that require this plant from BASF. We’re fortunate in that they’re developing it on our site, and we then gain the advantages of that technology that’s a world first.

Are your copper plates collected from your mine gate and then exported?

At this stage, that’s what will happen. We’re exporting, so there’s no plan at this stage for us to do anything else on the beneficiation side, but it’s certainly something I think we will look at as we move forward. Other companies have said that they will look at further beneficiation steps and I think as we grow – we’re just a bit small at this stage – we’ll certainly look at that because there are some great opportunities there.

What in your view should be the biggest takeaway from the fact that you guys are going to list in October?

We will give investors the only pure copper play in South Africa. Through Coronation, we are required to pay 30% of our pre-tax profits as a dividend, so shareholders will get exposure to a copper company with great growth that’s coming. I think great share price appreciation, and a dividend that will be declared every year, so I think that’s what shareholders can look forward to.

Besides Coronation, are there any other fairly sizable shareholders involved?

Not at the moment. It’s basically management and the current board that’s putting most of the capital. Coronation is the only big institutional shareholder at this stage, but certainly, with the listing, we’re looking at getting more institutional interest in the company.

Big Tree Copper is rehabilitating old mine dumps in the copper mining area founded in 1860 by the Okiep Copper Company.

The rock dumps were considered waste but on a closer inspection revealed the presence of considerable oxide-bearing copper that needed an SX-EW plant to extract.

Dollarama Gets OK to Renew Buyback Program of 7.5% of Common Shares

By Adriano Marchese


Canadian dollar store retail chain Dollarama Inc. said that it intends to renew its buyback program to repurchase up to 7.5% of its public float over the course of a one-year period.

Dollarama said Tuesday it received approval from the Toronto Stock Exchange to renew its normal course issuer bid, or NCIB, to buy back up to 18.7 million of its shares starting July 7.

At Monday’s closing price of 75.49 Canadian dollars (US$58.70), the value of the shares would be around C$1.41 billion.


Write to Adriano Marchese at adriano.marchese@wsj.com


Toronto market rises in thin trade as resource shares rally

(Adds details throughout; updates prices to close)

* TSX ends up 167.50 points, or 0.9%, at 19,028.86

* Energy sector gains 2.7%; oil rises more than 2%

* Materials add 2.2%

TORONTO, July 4 (Reuters) – Canada’s main stock index rose
on Monday, led by energy shares, as investors returned from a
long weekend to buy riskier assets that have been battered by
concerns over a global economic slowdown.

The Toronto Stock Exchange’s S&P/TSX composite index
ended up 167.50 points, or 0.9%, at 19,028.86. Trading
volumes were lower than usual as the United States celebrated
the Fourth of July holiday.

The TSX was closed on Friday for Canada Day. It fell 13.8%
in the second quarter, its biggest quarterly decline since the
first quarter of 2020, on fears that harsh steps by major
central banks to tame inflation will cause an economic downturn.

Consumer inflation expectations surged in Canada, hitting
fresh highs in the short term and up “significantly” over the
long term, a Bank of Canada survey showed on Monday, bolstering
calls for a very rare 75 basis point rate increase at a policy
decision next week.

The energy sector gained 2.7% as crude oil rose more
than 2% on concerns of tight supply amid lower OPEC output,
unrest in Libya and sanctions on Russia.

The materials sector, which includes precious and base
metals miners and fertilizer companies, added 2.2%.

Together, energy and materials account for 30% of the market
capitalization on the Toronto exchange.

Industrials ended 0.9% higher.
(Reporting by Fergal Smith; Additional reporting by Sruthi
Shankar in Bengaluru)

Trisura : Reports Second Quarter 2022 Results

PRESS RELEASE

TRISURA GROUP TO ANNOUNCE SECOND QUARTER RESULTS ON AUGUST 4th,

2022 AND HOST EARNINGS CONFERENCE CALL THE FOLLOWING DAY

TORONTO, July 4, 2022 – Trisura Group Ltd. (“Trisura” or “Trisura Group”) (TSX: TSU), a leading specialty insurance provider, will release its second quarter 2022 results after the market closes on Thursday, August 4th, 2022.

The company will host a conference call for analysts and investors on Friday, August 5th, 2022 at 9:00 a.m. ET.

Conference call participants will be David Clare, President and Chief Executive Officer and David Scotland, Chief Financial Officer.

To listen to the call via live audio webcast, please follow the link below: https://edge.media-server.com/mmc/p/me2jn4xb

A replay of the call will be available through the link above.

About Trisura Group

Trisura Group Ltd. is a specialty insurance provider operating in the surety, risk solutions, corporate insurance, fronting and reinsurance segments of the market. Trisura has investments in wholly owned subsidiaries through which it conducts insurance and reinsurance operations. Those operations are primarily in Canada (“Trisura Canada”) and the United States (“Trisura US”). Trisura Group Ltd. is listed on the Toronto Stock Exchange under the symbol “TSU”.

Further information is available at http://www.trisura.com/group. Important information may be disseminated exclusively via the website; investors should consult the site to access this information. Details regarding the operations of Trisura Group Ltd. are also set forth in regulatory filings. A copy of the filings may be obtained on Trisura Group’s SEDAR profile at www.sedar.com.

For more information, please contact:

Name: Bryan Sinclair

Tel: 416 607 2135

Email: bryan.sinclair@trisura.com

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Trisura Group Ltd. published this content on 04 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 July 2022 21:42:01 UTC.

Chart Scan – Jul 04, 2022

Chart Scan – Jul 04, 2022

AFM.V – Alphamin Resources Corp.

AGX.V – Silver X Mining Corp.

BHS.V – Bayhorse Silver Inc.

BSR.V – Bluestone Resources Inc.

EDDY.V – Edison Cobalt Corp.

ELEC.V – Electric Royalties Ltd.

GR.V – Great Atlantic Resources Corp.

LFST.V – Lifeist Wellness Inc.

MHUB.V – Minehub Technologies Inc.

MMA.V – Midnight Sun Mining Corp.

MPM.V – Millennial Precious Metals Corp.

OG.V – Organic Garage Ltd.

PUMA.V – Puma Exploration Inc.

SCOT.V – Scottie Resources Corp.

VIPR.V – Silver Viper Minerals Corp.

VLI.V – Vision Lithium Inc.

VVC.V – VVC Exploration Corp.

WAR.V – Warrior Gold Inc.

WMG.V – Western Magnesium Corporation

ZACA.V – Zacapa Resources Ltd.

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Erin Ventures : Announces Initial Analyst Coverage Report by MMG Capital

Disclaimer

By clicking on this link you will be leaving the Erin Ventures website and entering the website of a third party. Erin Ventures has no control over this third party website and accepts no responsibility for either its content or its security. Erin Ventures does not adopt, confirm or endorse any information that may be contained on this website.

External links either open a new browser window or prompt you to view or save a PDF file on your computer. Click [X] to close these new windows to return to this page on the EV site.

(or press ESC or click outside this window)

Forward Looking Statements

This release contains forward looking statements. The words “believe,” “expect,” “feel,” “plan,” “anticipate,” “project,” “could,” “should” and other similar expressions generally identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties including, without limitation, variations in estimated costs, the failure to discover or recover economic grades of minerals, and the inability to raise the funds necessary, changes in external market factors including commodity prices, and other risks and uncertainties. Actual results could differ materially from the results referred to in the forward-looking statements.

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Victoria, B.C., October 7, 2021

Erin Ventures Inc. [TSXV: EV] (“Erin” or the “Company”), an international mineral exploration and development company with boron assets in Serbia, reports that Nick Hatch, Mining Research Analyst at MMG Capital Limited has published an initial equity analyst research report on the Company. A copy of the initial research report and any future reports may be obtained directly from MMG Capital Limited.

Please note that any opinions, estimates, forecasts or conclusions regarding Erin Ventures’ performance made by this analyst are theirs alone, and the Company does not take a position on whether it agrees or disagrees with such opinions, estimates, forecasts or conclusions.

Erin Ventures does not provide analyst reports. An electronic copy of the research analyst’s report will be available directly from their website, at their discretion.

On behalf of the Board of Directors,
Tim Daniels

About Erin Ventures Inc.
Erin Ventures Inc. is an international mineral exploration and development company with boron assets in Serbia. Headquartered in Victoria, B.C., Canada, Erin’s shares are traded on the TSX Venture Exchange under the symbol “EV”. For detailed information please see Erin’s website at www.erinventures.com or the Company filed documents at www.sedar.com.

Piskanja is Erin’s wholly owned boron deposit with a Measured Mineral Resource of 1.39 million tonnes (averaging 35.59% B2O3), an Indicated Mineral Resource of 5.48 million tonnes (averaging 34.05% B2O3), and an Inferred Mineral Resource of 284.7 thousand tonnes (averaging 39.59% B2O3), calculated in accordance with the Canadian Institute of Mining Definition Standards on Mineral Resources and Reserves (CIM Standards), as disclosed in Erin’s report titled, “Technical Report and Preliminary Economic Assessment For The Piskanja Borate Project, Serbia, June 24, 2022”. The responsible person for the PEA and the Mineral Resource Estimate contained within, is Prof. Miodrag Banješević PhD. P.Geo, EurGeol, a Qualified Person in accordance with the CIM Definition Standards on Mineral Resources and Reserves (CIM Standards), and independent of Erin Ventures.

For further information, please contact:
Erin Ventures Inc. Canada
Blake Fallis, General Manager TSX Venture: EV
Phone: 1-250- 384-1999 or 1-888-289-3746 USA
www.erinventures.com
645 Fort Street, Suite 203
Victoria, BC V8W 1G2
Canada

Erin Public Quotations:
Canada
TSX Venture: EV
USA
SEC 12G3-2(B) #82-4432
OTCBB: ERVFF
Europe
Berlin Stock Exchange: EKV

The technical information in this release was prepared and approved by James E Wallis, M.Sc. (Eng), P. Eng., a director of Erin, who is a Qualified Person under National Instrument 43-101.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements:
This press release contains or refers to forward-looking information under Canadian securities legislation, including statements regarding the timing of future mineral resource estimates, estimation of mineral resources, exploration results, potential mineralization, exploration and mine development plans, timing of the commencement of operations and future production and is based on current expectations that involve a number of business risks and uncertainties. The words “believe,” “expect,” “feel,” “plan,” “anticipate,” “project,” “could,” “should” and other similar expressions generally identify forward-looking statements. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to convert estimated mineral resources to reserves, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, as well as those factors discussed in the section entitled “Risks of the Business” in the Company s most recent regulatory filings which are posted on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by applicable securities law. These and other factors made in public disclosures and filings by the Company should be considered carefully.

Mineral resources are not mineral reserves and do not have demonstrated economic viability. “Inferred Resources” have a great amount of uncertainty as to their existence, and economic and legal feasibility. Investors are cautioned not to assume that all or any part of an inferred mineral resource reported in this news release will ever be upgraded to a higher category or to reserves. U.S. persons are advised that while mineral resources are recognized under Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. persons are also cautioned not to assume that all or any part of an inferred mineral resource is economically or legally mineable.

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Erin Ventures Inc. published this content on 04 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 July 2022 14:42:09 UTC.

FTSE 100 set to close in green despite households being 'brutally…

  • FTSE 100 closes up 64 points

  • Oil and gas biggest risers

  • EasyJet COO resigns amid travel chaos

4.45pm: FTSE closes in the green

FTSE 100 closed firmly higher on Monday as commodity stocks did well and Wall Street was closed for the July 4 holiday.

Britain’s blue-chip benchmark closed up 64 points, or 0.89%, at 7,232.

“The FTSE 100 is around 1% higher, given a lift by oil and oil stocks as Europe enjoys a quiet session thanks to the US holiday,” said market analyst Chris Beauchamp from online trading platform IG in a note.

“European futures were looking strong at the beginning of the day but the session has seen continental Europe edge back while oil prices keep supporting the FTSE 100,” he added.

“A fresh surge in crude prices during the day has bolstered BP and Shell, providing hope that the UK leading index still has the power to outshine other indices. But as ever it is the absence of the US that is problematic – Wall Street has driven the selloffs this year, and today’s gains could easily slip away tomorrow.”

4pm: AO World reassures

AO World PLC (LSE:AO.) insisted its finances are nothing to worry about after a report from The Sunday Times said one of its credit insurers may be withdrawing support.

AO reassured investors that it had access to an £80mln credit facility and has been working on “actions to strengthen its balance sheet,” as it trades in line with expectations.  

Numis and Jeffries commented that Atradius, the credit insurance provider, had stopped its cover at the beginning of May, with the news first reported over the weekend.

Its shares crashed 18% to a two-year low of 55.7p on Monday afternoon.

Credit insurance usually protects companies if one of their customers goes bankrupt between delivery and payment, with limited cover often a worrying sign for cash flow.

AO has nosedived over 85% since its all-time high in January 2021, when its online sales were bolstered by pandemic-related spending.

3.17pm: Plummeting real wages leaves households ‘brutally exposed’

Fifteen years of languishing incomes have left households “brutally exposed” to the rising cost-of-living crisis, according to a Resolution Foundation report.

In the decade-and-a-half leading up to the pandemic, the average income of working-age families rose by just 0.7% per year. For context, it was on average 2.3% between 1961 and 2005.

Not only was this significantly slower wage growth than in prior decades but UK inflation reaching 40-year highs has further exacerbated this problem for households.  

The think tank Resolution reported that many families have not been able to save up the necessary amounts to comfortably live during times of such economic uncertainty.

2.31pm: Scandinavian airline SAS latest to announce strikes

Scandinavian airline SAS became the latest people carrier to confirm strikes after failing to reach an agreement with pilots.

It claimed the intended walkout was “devastating for SAS and puts the company’s future together with the jobs of thousands of colleagues at stake.”

Trade unions that represented approximately 1,000 SAS pilots said in June its members would refuse to work at one of the airline’s busiest times of the year after not agreeing upon a new collective labour agreement.

The airline said it was likely to provide refunds or tickets for a later date but admitted rebooking customers would be “highly limited.”

Meanwhile, various other airlines have announced large strikes during the peak summer holidays as travel chaos has shown little sign of easing.

Over 700 mostly check-in staff at Heathrow Airport have already voted to strike in the summer holidays, which is expected to severely disrupt family getaways.

Workers’ wages were slashed by 10% during the pandemic and their pay has remained at this level since. BA offered a one-off payment – equal to 10% of their salary – but the staff want the cut fully reversed.

The GMB and Unite unions have also been consulting engineers and call centre staff at Gatwick, Glasgow, Manchester and Newcastle on taking action.

Various strike talks at Britain’s biggest airline have been going on since the start of the year, with its share price taking a 35% hit in that period.

Onto the UK-listed budget airlines, Ryanair Holdings PLC (LSE:RYA) has already done or is expected to strike across several European countries.

Meanwhile, Spanish EasyJet PLC staff voted overwhelmingly in favour of action on many peak travel days this summer.

Both companies’ shares sunk over 20% in the last month as strike dates were confirmed.

1.50pm: EasyJet COO resigns amid travel chaos

EasyJet PLC chief operating officer Peter Bellew resigned following a turbulent few years for the budget airline, which most recently has seen strikes and staff shortages lead to cancelled flights.

Bellew reportedly stepped down on 1 July, EasyJet commented, with David Morgan, director of flight operations, taking his role temporarily.

Bellew will “pursue other business opportunities and in the meantime is committed to ensuring a smooth transition,” the company said.

Thousands of EasyJet flights already have been or will be delayed or cancelled amid significant staff shortages.

Although John Lundgren, chief executive, insisted it was “absolutely focused on delivering a safe and reliable operation this summer.”

This resignation was just a month after trade union Unite accused the airline of a “lack of leadership” and blamed Bellew for not “taking control of [the] situation.”

1.09pm: Sterling strengthens 

The pound strengthened on Monday after advancing away from two-week lows as investors await the Bank of England’s monetary policy plans on future interest rates later this week.

Sterling jumped 0.1% against the dollar to US$1.211, while it was also up by 0.1% against the euro to 86.08p.

Two of the monetary policy committee (MPC) members will speak this week, with chief economist Huw Pill and Catherine Mann expected to address strategies on Wednesday and Thursday respectively.

The pound last week ended its largest six-month drop since 2016, when the UK voted to leave the European Union, with the Sterling down over 10% compared to the dollar in 2022.

12.23pm: Fuel prices rise but wholesale costs fall

Fuel prices have continued flirting with record highs despite nearly a month of lower wholesale costs.

Petrol reached a new all-time high of 191.53p a litre on Sunday, while diesel was just 0.04p below its record at 199.03p a litre, on average, the AA said.

Although wholesale costs have been falling since the wake of the Jubilee weekend, with petrol costs for fuel retailers 10p lower last week compared with early June.

Diesel has experienced the same decline but not by the same magnitude.

Luke Bosdet, AA fuel spokesman, commented: “It is an outrage, plain and simple, that the fuel trade could be slashing petrol prices as the nation heads towards the holiday season, but isn’t.

“The retailers came up with an excuse that demand had fallen to 80% for some.

“Yet, last week, official statistics showed that petrol consumption is still at 94% of normal.”

11.37am: Pub numbers reach record low

English and Welsh pubs plummeted to their lowest levels on record as the hospitality sector’s woes showed little sign of easing.

In 2020, pubs were forced to close due to Covid-19 and many businesses lost out on over a year’s revenues. But now, in the wake of the pandemic, pubs are having to deal with surging energy prices, soaring wholesale costs and higher tax payments.

There were just 39,970 pubs in June – a reduction of over 7,000 since 2012, according to real estate consultancy Altus Group (TSX:AIF).

The West Midlands had the most pub closures in the first half of the year, at 28, while London and Eastern England were close behind with 24.

In 2019 – the year before the pandemic – the sector grew for the first time in a decade but the unpredictable events just a year later halted the growth.

J D Wetherspoon PLC, which has over 900 pubs in the whole of the UK and Ireland, saw its share price drop 0.6% to 631.5p.

10.50am: AO World drops

AO World PLC (LSE:AO.) (AO World PLC (LSE:AO.)) sunk 16% on Monday afternoon as investors got spooked by a weekend report that one of its credit insurers might be withdrawing support.

The Sunday Times suggested one of its suppliers might be cutting back on cover, which would force the white goods retailer to pay upfront for stock, raising concern about cash flow.

Shares fell 10.6p to 57.4p, valuing the business at £281mln.

AO sells home essentials including fridges, ovens and washing machines.

During the pandemic, AO boomed as lockdowns hit competitors such as Currys PLC (LSE:CURY) (Currys PLC (LSE:CURY)) and its share price rocketed.

But its value has crashed by over 85% from the all-time high seen in January 2021, when lockdowns and online spending were still rampant.

10.10am: Ryanair and Wizz Air passenger numbers rocket 

Now onto airlines, which in recent months have also been subject to mayhem, cancellations and delays on staff shortages.

Budget air carriers Ryanair Holdings PLC (LSE:RYA) and Wizz Air Holdings PLC (AIM:WIZZ) had mixed share price responses to surging June passenger numbers.

Ryanair said it carried 15.9mln people, which was triple the amount compared with the same month in 2021, while its load factor soared 95%.

Meanwhile, Wizz Air reported an increase in June passenger numbers of 180% to 4.3mln.

Although it must be noted, flying last summer was a headache and most potential holiday-goers were put off.

Many Covid-19 tests were required to fly in and out of the UK, pushing prices higher and demand lower.

On Monday morning, the non-UK-listed Ryanair climbed 3.7% in France, while Wizz Air dropped 3.1% on the London Stock Exchange.

9.30am: Campaigners cause chaos on the roads 

Drivers and commuters have experienced enough chaos on the road in recent weeks but there was a new reason for delays this time.

Campaigners against skyrocketing fuel prices blocked some motorways during Monday morning’s rush hour.

Protesters made a rolling blockade along the M4, heading towards the Prince of Wales bridge, with similar actions expected in Yorkshire and Essex.

Police warned of “serious disruption throughout the day,” with motorists advised to stay home if possible.

Howard Cox, founder of the FairFuelUK Campaign, said: “These are not just demonstrations against the record excruciatingly high petrol and diesel prices that rise each and every day. 

“They are also about the sickening chronic manipulation of pump prices and the complete lack of scrutiny by our out-of-touch government, in allowing unchecked petrol and diesel profiteering to run rife.”

8.55am: Oil and gas push FTSE higher

Almost an hour into open, the FTSE 100 was up 0.9%, or 65 points, as the main UK index echoed America’s positive end to last week.

The blue-chip index was led by giant oil and gas companies, with Harbour Energy PLC (LSE:HBR) stealing the headlines, having advanced 4.1% to 346.2p.

Its larger rivals, BP PLC (LSE:BP.) and Shell PLC (LSE:SHEL, NYSE:SHEL), were not far behind at all in second and third place, after climbing 3.5% and 2.7% respectively.

Russ Mould, investment director at AJ Bell, said: “A small bounce back in the oil price was enough to give BP and Shell a lift and provide welcome support to the FTSE 100 index. 

“Oil supplies have been watched closely in recent weeks amid concerns about a slowdown in the global economy.

“Fundamentally supplies continue to be tight and there is still enough economic activity to stop oil prices slumping.”

American markets are closed on Monday for Independence Day, while European investors await eurozone inflation data later today.

7.20am: Footsie to rally

FTSE 100 was expected to rally after US markets perked up at the end of last week.

Financial spread betting firms were pencilling in gains of around fifty points for London’s blue-chip index a couple of hours before the open.

Wall Street is shut today for the 4th of July celebrations but for the rest of the week the news comes thick and fast ending with the monthly drama that is the US non-farm payrolls data on Friday.

The latest US quarterly corporate earnings also start to be published and Liberum is warning that this season is likely to be a lot worse than current forecasts suggest with worrying trends also for new orders.

“Our analysis suggests that earnings should be downgraded by some 13% in coming months but even that is unlikely to be enough,” it said.

The broker adds that orders in both Europe and the US are also now at levels indicating a recession, especially in the US.

“Going back 50 years, the only time we saw these levels was at the beginning of a recession and during the 1991 recession, we didn’t even see levels as low as this.

“Current readings of the US NOI not only indicate a recession, but that one is starting right now or may have already started.”

In the UK, Monday has little in the way of scheduled news, but, like in the US, it gets busy later in the week.

Flash manufacturing and services data on the economy will give an insight into the economy while the impact of rising inflation and squeezed incomes is also likely to figure prominently in updates from some big companies.

Retailers J Sainsbury and Currys, housebuilder Persimmon, bookmaker Entain and holiday group Jet 2 (read more) are among the household names issuing statements. 

6.50am: Early Markets – Asia / Australia

Asian shares were mixed on Monday with the Reserve Bank of Australia expected to lift the official interest rate to 1.35% at Tuesday’s board meeting. It is expected to rise to 2.35% by year’s end.

The central bank’s pivot to inflation fighting could spark a decline in mortgage lending of up to 40% in coming months, according to Swiss-based global investment bank UBS.

The Shanghai Composite in China gained 0.27% while Hong Kong’s Hang Seng index slipped 0.34%.

Japan’s Nikkei 225 was trading 0.83% higher but South Korea’s Kospi was on the backfoot, trading 0.50% lower.

Australia’s S&P/ASX200 advanced 1.1%, led by strong gains across the energy and real estate sectors.

READ OUR ASX REPORT HERE

Vermilion Energy Gets Green Light to Buy Back Up to 10% of Public Float

By Adriano Marchese


Vermilion Energy Inc. said that the Toronto Stock Exchange has approved its plan to begin a buyback program for around 10% of its public float over the course of a one-year period.

On Monday, the Calgary, Alberta-based oil-and-gas producer said it will begin its normal course issuer bid, or NCIB, on July 6 in which it will aim to buy back up to 16.1 million shares in the 12-month period ending on July 5 of next year.

At Thursday’s closing price of 24.50 Canadian dollars (US$19.02), the shares would be worth around C$393.9 million.


Write to Adriano Marchese at adriano.marchese@wsj.com


FTSE 100 firmly in green as oil companies lead the way on record…

FTSE 100 climbs 80 points

Oil and gas biggest risers

US closed for Independence Day

Fuel prices have continued flirting with record highs despite nearly a month of lower wholesale costs.

Petrol reached a new all-time high of 191.53p a litre on Sunday, while diesel was just 0.04p below its record at 199.03p a litre, on average, the AA said.

Although wholesale costs have been falling since the wake of the Jubilee weekend, with petrol costs for fuel retailers 10p lower last week compared with early June.

Diesel has experienced the same decline but not by the same magnitude.

Luke Bosdet, AA fuel spokesman, commented: “It is an outrage, plain and simple, that the fuel trade could be slashing petrol prices as the nation heads towards the holiday season, but isn’t.

“The retailers came up with an excuse that demand had fallen to 80% for some.

“Yet, last week, official statistics showed that petrol consumption is still at 94% of normal.”

11.37am: Pub numbers reach record low

English and Welsh pubs plummeted to their lowest levels on record as the hospitality sector’s woes showed little sign of easing.

In 2020, pubs were forced to close due to Covid-19 and many businesses lost out on over a year’s revenues. But now, in the wake of the pandemic, pubs are having to deal with surging energy prices, soaring wholesale costs and higher tax payments.

There were just 39,970 pubs in June – a reduction of over 7,000 since 2012, according to real estate consultancy Altus Group (TSX:AIF).

The West Midlands had the most pub closures in the first half of the year, at 28, while London and Eastern England were close behind with 24.

In 2019 – the year before the pandemic – the sector grew for the first time in a decade but the unpredictable events just a year later halted the growth.

J D Wetherspoon PLC, which has over 900 pubs in the whole of the UK and Ireland, saw its share price drop 0.6% to 631.5p.

10.50am: AO World drops

AO World PLC (LSE:AO.) sunk 13% on Monday morning as investors worried about the finances of the company, with consumer confidence spiralling lower.

The consumer goods business revealed credit insurers will be withdrawing their support, potentially forcing AO to pay suppliers upfront for goods and causing concern for cash flow.

With shares down 9p to 59p a few hours into trade today, the business was valued at £281mln.

AO sells home essentials including fridges, ovens and washing machines.

During the pandemic, when some of its closest competitors like Currys PLC (LSE:CURY) closed their stores, AO’s share price rocketed amid strong performances.

The company has crashed over 85% since its all-time high seen in January 2021, when lockdowns and online spending were still rampant.

10.10am: Ryanair and Wizz Air passenger numbers rocket 

Now onto airlines, which in recent months have also been subject to mayhem, cancellations and delays on staff shortages.

Budget air carriers Ryanair Holdings PLC (LSE:RYA) and Wizz Air Holdings PLC (AIM:WIZZ) had mixed share price responses to surging June passenger numbers.

Ryanair said it carried 15.9mln people, which was triple the amount compared with the same month in 2021, while its load factor soared 95%.

Meanwhile, Wizz Air reported an increase in June passenger numbers of 180% to 4.3mln.

Although it must be noted, flying last summer was a headache and most potential holiday-goers were put off.

Many Covid-19 tests were required to fly in and out of the UK, pushing prices higher and demand lower.

On Monday morning, the non-UK-listed Ryanair climbed 3.7% in France, while Wizz Air dropped 3.1% on the London Stock Exchange.

9.30am: Campaigners cause chaos on the roads 

Drivers and commuters have experienced enough chaos on the road in recent weeks but there was a new reason for delays this time.

Campaigners against skyrocketing fuel prices blocked some motorways during Monday morning’s rush hour.

Protesters made a rolling blockade along the M4, heading towards the Prince of Wales bridge, with similar actions expected in Yorkshire and Essex.

Police warned of “serious disruption throughout the day,” with motorists advised to stay home if possible.

Howard Cox, founder of the FairFuelUK Campaign, said: “These are not just demonstrations against the record excruciatingly high petrol and diesel prices that rise each and every day. 

“They are also about the sickening chronic manipulation of pump prices and the complete lack of scrutiny by our out-of-touch government, in allowing unchecked petrol and diesel profiteering to run rife.”

8.55am: Oil and gas push FTSE higher

Almost an hour into open, the FTSE 100 was up 0.9%, or 65 points, as the main UK index echoed America’s positive end to last week.

The blue-chip index was led by giant oil and gas companies, with Harbour Energy PLC (LSE:HBR) stealing the headlines, having advanced 4.1% to 346.2p.

Its larger rivals, BP PLC (LSE:BP.) and Shell PLC (LSE:SHEL, NYSE:SHEL), were not far behind at all in second and third place, after climbing 3.5% and 2.7% respectively.

Russ Mould, investment director at AJ Bell, said: “A small bounce back in the oil price was enough to give BP and Shell a lift and provide welcome support to the FTSE 100 index. 

“Oil supplies have been watched closely in recent weeks amid concerns about a slowdown in the global economy.

“Fundamentally supplies continue to be tight and there is still enough economic activity to stop oil prices slumping.”

American markets are closed on Monday for Independence Day, while European investors await eurozone inflation data later today.

7.20am: Footsie to rally

FTSE 100 was expected to rally after US markets perked up at the end of last week.

Financial spread betting firms were pencilling in gains of around fifty points for London’s blue-chip index a couple of hours before the open.

Wall Street is shut today for the 4th of July celebrations but for the rest of the week the news comes thick and fast ending with the monthly drama that is the US non-farm payrolls data on Friday.

The latest US quarterly corporate earnings also start to be published and Liberum is warning that this season is likely to be a lot worse than current forecasts suggest with worrying trends also for new orders.

“Our analysis suggests that earnings should be downgraded by some 13% in coming months but even that is unlikely to be enough,” it said.

The broker adds that orders in both Europe and the US are also now at levels indicating a recession, especially in the US.

“Going back 50 years, the only time we saw these levels was at the beginning of a recession and during the 1991 recession, we didn’t even see levels as low as this.

“Current readings of the US NOI not only indicate a recession, but that one is starting right now or may have already started.”

In the UK, Monday has little in the way of scheduled news, but, like in the US, it gets busy later in the week.

Flash manufacturing and services data on the economy will give an insight into the economy while the impact of rising inflation and squeezed incomes is also likely to figure prominently in updates from some big companies.

Retailers J Sainsbury and Currys, housebuilder Persimmon, bookmaker Entain and holiday group Jet 2 (read more) are among the household names issuing statements. 

6.50am: Early Markets – Asia / Australia

Asian shares were mixed on Monday with the Reserve Bank of Australia expected to lift the official interest rate to 1.35% at Tuesday’s board meeting. It is expected to rise to 2.35% by year’s end.

The central bank’s pivot to inflation fighting could spark a decline in mortgage lending of up to 40% in coming months, according to Swiss-based global investment bank UBS.

The Shanghai Composite in China gained 0.27% while Hong Kong’s Hang Seng index slipped 0.34%.

Japan’s Nikkei 225 was trading 0.83% higher but South Korea’s Kospi was on the backfoot, trading 0.50% lower.

Australia’s S&P/ASX200 advanced 1.1%, led by strong gains across the energy and real estate sectors.

READ OUR ASX REPORT HERE

Spectra7 Microsystems : Q1 2022 MD&A

Spectra7 Microsystems Inc.

Management’s Discussion & Analysis

For the Three Months Ended

March 31, 2022

May 29, 2022

Spectra7 Microsystems Inc.

Management’s Discussion and Analysis

For the Three Months Ended March 31, 2022

This management’s discussion and analysis (“MD&A”) of financial condition and results of operations of Spectra7 Microsystems Inc. (“Spectra7” or the “Company”) was prepared by management as at May 29, 2022. Throughout this MD&A, unless otherwise specified, “Spectra7”, “the Company”, “we”, “us” or “our” refer to Spectra7 Microsystems Inc. and its subsidiaries. This MD&A should be read in conjunction with the audited consolidated financial statements of the Company and notes thereto as at December 31, 2021 (the “Annual Financial Statements”) and the unaudited condensed interim consolidated financial statements for the three months ended March 31, 2022 and 2021 (the “Interim Financial Statements” and, together with the Annual Financial Statements, the “Statements”). In preparing this MD&A, we have taken into account information available to us up to May 29, 2022 unless otherwise stated.

The Financial Statements have been prepared by management in accordance with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”) and interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”). All amounts are expressed in U.S. dollars unless otherwise noted. Other information contained in this document has also been prepared by management and is consistent with information included in the Financial Statements. You will find the Financial Statements on SEDAR at www.sedar.com.

This MD&A contains commentary from the Company’s management regarding the Company’s strategy, operating results, financial position and outlook. Management is responsible for the accuracy, integrity, and objectivity of the MD&A, and develops, maintains and supports the necessary systems and controls to provide reasonable assurance as to the accuracy of the comments contained herein.

The Audit Committee and the Board of Directors provide an oversight role with respect to all public financial disclosures by the Company. The Board of Directors approves the Financial Statements and MD&A after the completion of its review and recommendation for approval by the Audit Committee, which meets periodically to review all financial reports, prior to filing.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This MD&A contains certain forward-looking information and statements relating, but not limited to, the Company’s future financial position and results of operations, strategies, plans, objectives, goals, targets, and future developments in the markets where the Company participates or is seeking to participate. Forward-looking information typically contains statements with words such as “consider”, “anticipate”, “believe”, “expect”, “plan”, “intend”, “may”, “likely”, or similar words suggesting future outcomes or statements regarding an outlook, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Readers should be aware that these statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements of the Company to differ materially from those suggested by the forward-looking information and statements, some of which may be beyond the control of management.

Although the Company believes that the expectations, estimates, and projections reflected in such forward-looking information and statements are reasonable, such forward-looking information and statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward- looking information and statements. On this basis, readers are cautioned not to place undue reliance on such forward looking information and statements.

Factors which could cause actual results to differ materially from current expectations include, but are not limited to:

  • the adverse impact of COVID-19 on our staffing, revenue, operations, manufacturing supply chain, project development and customer demand;
  • availability of adequate product supplies and third party manufacturing in an environment of semiconductor industry supply shortages;
  • our reliance on a limited number of third party manufacturers;

Page 2

  • the degree of competition in the business areas in which we operate;
  • our ability to secure orders from a limited number of customers;
  • the absence of long-term supply contracts with any of the Company’s third-party vendors and potential disruption in supply of products or materials;
  • our ability to make the substantial research and development investments required to remain competitive;
  • our ability to charge prices that will result in favorable gross margins;
  • our ability to introduce new or enhanced products on a timely basis;
  • market demand and penetration of new markets for our products and services;
  • our ability to contain and appropriately budget expenses, due to our limited operating history;
  • the length of the sales cycle required to establish design wins and bring design wins to production;
  • reliance on distributors;
  • our ability to deliver our products in the correct product mix required by our customers and ability to control order and shipment uncertainties;
  • the substantial quarterly and annual fluctuations in our operating results;
  • our dependence on existing members of the senior management team;
  • our ability to attract and retain qualified employees and contain payroll costs;
  • unforeseen delays, expenses and damage to reputation caused by defects or bugs;
  • potential claims of intellectual property infringement;
  • our ability to protect our intellectual and intangible properties;
  • the use of open source software;
  • reliance on third parties to provide services and technology;
  • going concern risk;
  • impact of negative cash flow from operating activities;
  • potential losses to our facilities or distribution system due to catastrophes;
  • compliance with various governmental regulations and related costs of compliance;
  • cyclicality in the semiconductor industry;
  • conformity of the Company’s products to industry standards;
  • unanticipated changes in our tax rates;
  • fluctuation of share price;
  • decline in share price due to the absence of, or negative reports, about the business by securities or industry analysts;
  • adverse international economic conditions that adversely affect consumer spending;
  • general political and economic conditions in the countries in which we operate;
  • strain on our resources as a result of the requirements of being a public company;
  • litigation risk;
  • market price volatility and potential impact on share price;
  • our potential need for additional financings in order to meet future capital requirements for our operations;
  • our potential to breach certain covenants, representations and warranties in our loan arrangements;
  • our ability to repay the Convertible Debentures (as defined below)
  • our ability to declare dividends;
  • our ability to meet significant research and development milestones; and
  • our ability to enter into agreements with CRX Consortium members or the adoption of interconnects that use the Company’s active copper cable technology.

We caution that this list is not exhaustive of all possible factors. For a detailed description of risk factors associated with the Company, refer to the “Risks Factors” section of the Company’s Annual Information Form filed on May 2, 2022, which is available on SEDAR at www.sedar.com.

The forward-looking information and statements in this MD&A are, unless otherwise indicated, stated as of the date hereof and are presented for the purpose of assisting investors and others in understanding our financial position and results of operations as well as our objectives and strategic priorities, and may not be appropriate for other purposes. The Company does not undertake any obligation to update publicly or to revise any forward-looking information and statements, whether as a result of new information, future events or otherwise, except as required by law.

Page 3

OVERVIEW OF THE COMPANY

Background

The Company delivers high performance analog semiconductors at unmatched bandwidth, speed and resolution to enable disruptive industrial design for leading electronics manufacturers in data centers, Virtual Reality (“VR”), Augmented Reality (“AR”), and other connectivity markets.

The Company was incorporated on October 12, 2010 as a capital pool company named “Chrysalis Capital VIII Corporation” (“Chrysalis”) pursuant to the filing of articles of incorporation under the Canada Business Corporations Act. The articles of incorporation of the Company were amended by the filing of articles of amendment dated April 19, 2011 to remove certain provisions. On February 5, 2013, the Company consolidated its common shares (the “common shares”) by a ratio of 3.86364:1 and to change its name to “Spectra7 Microsystems Inc.”. On July 16, 2021, the Company continued its corporate existence from the Canada Business Corporations Act to the Business Corporations Act (Ontario).

On February 5, 2013, the Company, then named Chrysalis Capital VIII Corporation, completed a reverse takeover transaction whereby Chrysalis acquired all of the issued and outstanding shares of Spectra7 Microsystems Corp. (formerly Fresco Microchip Inc.) (“Fresco”), a company incorporated in Ontario, and Spectra7 Microsystems (Ireland) Limited (formerly RedMere Technology Limited), a company incorporated in Ireland. As a result of such transaction, which constituted the Company’s qualifying transaction under the policies of the TSX Venture Exchange (the “TSXV”), the former shareholders of Fresco acquired control of the Company. From February 19, 2013 until July 22, 2015, the common shares of the Company were listed for trading on the TSXV under the symbol “SEV”. From July 23, 2015 to May 21, 2020, the common shares were listed for trading on the Toronto Stock Exchange (the “TSX”) under the symbol “SEV”. As of May 22, 2020, the common shares were again listed for trading on the TSXV under the symbol “SEV”. On June 21, 2021, the Company’s common shares commenced trading on the OTCQB Venture Market under the symbol “SPVNF”.

The registered office of the Company is located at 181 Bay Street, Suite 1800, Toronto, Ontario Canada, M5J 2T9 and its head office is in San Jose, California. The Company also has a design center in Cork, Ireland and a sales office in Dongguan, China. The Company is currently a reporting issuer in each of the provinces of Canada, excluding Québec.

Products

The Company’s family of products features a patented signal processing technology used in the design of active cables and specialty interconnects which enable longer, thinner and lighter interconnects in data centers, for VR, AR, and other connectivity products. The Company holds approximately 55 patents relating to its products.

Data Centers

GaugeChanger™ is an innovative and disruptive silicon technology that allows copper to extend much longer lengths without the cost and power penalty of optics that are used in data centers today. It works equally well at 25 Gbps NRZ, 50 Gbps PAM-4 and 112 Gbps PAM-4 enabling new connector standards of 100, 200, 400 and 800 Gbps.

At present, passive copper cables are struggling to meet the high speed connectivity demands of new data centers. Fiber optics are the primary alternative for data centers seeking high speed, at lengths longer than a few meters. GaugeChanger™, however, extends the use of copper with interconnects that are as fast and as thin as fiber optics, but at dramatically lower cost and power consumption. GaugeChanger™ enabled cables have a reach of up to seven meters to allow for top-of-rack and rack-to-rack applications in data centers.

Virtual Reality (VR)

The Company’s next-generation VR products include the VR7050 which the Company believes to be the industry’s first chip capable of enabling lightweight, ultra-thin active interconnects for gesture recognition and motion control backhaul. When used in conjunction with Spectra7’s VR7100 high speed video chip, the chipset delivers ultra- high bandwidth data, video, audio and power in a unified, ultra-light,super-thin wearable interconnect while

Page 4

achieving the low latency for a truly immersive VR experience.

Augmented Reality (AR)

The Company has also developed AR products that provide similar benefit to the VR products on thinner, shorter ‘wearable’ interconnects.

AR-Connect™ is an AR interconnect product line that is powered by the Company’s patented wearable network signal processing technology. The Company believes its patented AR-Connect™ is the industry’s first integrated cable, connector and embedded chipset product line for AR vision systems and wearable computing devices. AR- Connect™ enables AR glasses to connect to a smart phone, proprietary processing device or a desktop GPU/laptop processing unit, with a single unified and ultra-thin link.

DreamWeVR

DreamWeVR is an extensive product line targeted at next generation 4K Ultra-HD and 5K resolution VR and AR platforms for gaming, health care, architecture and business telepresence applications. The product line includes four new chips (VR8181, VR8050, VR8200 and VR8300) featuring SpectraLinear™ technology, new VR-specific connectors and three new head-mounted display (“HMD”) interconnect configurations to support high-bandwidth (up to 50Gbps), near-zero latency VR HMDs and AR glasses with reduced weight and complexity.

USB 3.2 consumer interconnects

The Company’s active VR8050 and VR8051 chips are the industry’s first for ultra-thin implementations of USB

3.2 consumer interconnects, reducing the conductor cross section by up to 90% compared to passive cable implementations. Applications for this interconnect implemented with the new Type-C connector include ultra-thin laptops, tablets, mobile devices, solid state disks and wearable computing devices. The resulting ultra-thin cable enabled by this new Spectra7 technology allows the cable to transfer data at supercomputer speeds (up to 10 times faster) with a plug shell or over-mold and cable strain relief dimension that is thinner than the mobile device itself, a critical dimension when implementing Type-C connectors in tablets and smart phones, and up to 90% lighter than passive cable conductors that would need to be much larger in diameter.

Overall Financial Performance

Net loss for the three months ended March 31, 2022 was $2.8 million compared to a net loss of $1.1 million in the same period in the prior year. Revenue for the three month period ended March 31, 2022 increased by 275% compared to the same period in the prior year. The increased revenue was driven primarily by the ramping product demand on our GaugeChanger™ products from hyperscaler data center operators and our DreamWeVR product.

Gross margin percentage for the three month period ended March 31, 2022 decreased from the same period in 2021 by approximately 14%, due mainly to premiums paid to secure wafers and supply chain availability as well as additional fees to expedite delivery in order to meet customers’ demand for data center and VR products. Expenditures during the three month period ended March 31, 2022 are approximately $3.7 million representing a increase of 158% from the same period in the prior year due to higher personnel costs compared to the prior year in which employees were furloughed, higher consulting fees for IT and investor relations, and costs to support customers’ ramp to production for our DreamWeVR products. This led to increases in research and development, sales and marketing and general and administrative expenditures. In addition, shared-based compensation also increased as more equity awards were issued to existing and new employees.

Impact of COVID-19 outbreak

We rely on third-party suppliers and manufacturers. Currently, the Company’s silicon products are manufactured at foundries by companies in Taiwan and the United States, and are packaged and tested in Taiwan and China. PCBs for active cable products are manufactured by a corporation in Hong Kong, China. The Company also uses third-party contractors for assembly of active cable products including contractors in China and Taiwan. This pandemic has resulted in the extended shutdown of certain businesses in certain jurisdictions, which have resulted in disruptions or delays to our supply chain. These include disruptions from the temporary closure of third-party supplier and manufacturer facilities, interruptions in product supply or restrictions on the export or shipment of our products. As a result of COVID-19, we have been unable to satisfy certain customer orders on a timely basis, with some customers experiencing delays in receiving our products. There is uncertainty around the duration and

Page 5

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