Enablence Announces a Bridge Financing and Update on Financing
Ottawa, Canada – September 10, 2014 – Enablence Technologies Inc. (“Enablence” or the “Company”) (TSXV: ENA), a leading supplier of optical components and subsystems for access, metro and long-haul markets, today announced a bridge loan in the amount of $720,000 (“Bridge Loan”) which is expected to close in the next few days, subject to TSX Venture Exchange approvals. This Bridge Loan is to assist the Company as part of the larger equity financing previously announced on June 17, 2014 (“Financing”), of which another tranche of the Financing of approximately US$3 million is expected to close during the week of September 22, 2014 (“Second Tranche”). The final tranche of the Financing for approximately US$4 to $5 million is expected by October 10, 2014, subject to TSX Venture Exchange approvals.
The Bridge Loan represents interim financing to support the operations of the Company and is expected to be repaid by the end of November 2014. The Bridge Loan is unsecured and non-interest bearing. Those persons extending the Bridge Loan will be issued warrants exercisable for an aggregate of approximately 4,799,998 common shares of the Company for a period of one year at an exercise price of $0.15. The issuance of the warrants in connection with the Bridge Loan is subject to TSX Venture Exchange approvals.
The Bridge Loan will be provided by several persons who are insiders of the Company and each is a related party within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The two independent directors of the Company have determined that an exemption is available from the formal valuation requirements and minority shareholder approval requirements under MI 61-101 and the two independent directors have approved the Bridge Loan unanimously. Louis DeJong, a director, and the three directors appointed by China TriComm Ltd. and its affiliates, namely, Messrs. Gao, Zhang and Chu, are affiliated with entities that will be participating in the Bridge Loan and therefore did not vote on these matters. This information is being filed less than 21 days prior to the expected closing of the Related Party Transaction. The shorter period was necessary in order to permit the Company to close the Bridge Loan in a timely manner including the Related Party Transaction.
About Enablence Technologies Inc.
Enablence is a publicly traded company that designs, manufactures and sells optical components and subsystems to a global customer base. It utilizes its patented technologies, including planar lightwave circuit (“PLC”) intellectual property, in the production of an array of photonic components and broadband subsystems that deliver a key portion of the infrastructure for current and next-generation telecommunication systems. The Company’s product lines address all three segments of optical networks: access – connecting homes and businesses to the network; metro – communication rings within large cities; and long-haul – linking cities and continents. For more information, visit www.enablence.com.
This press release may contain forward-looking statements regarding the financing transaction, the bridge loan, the issuance of warrants in connection with the bridge loan, funding of ongoing operations based on current expectations, future demand for products, forecasts and assumptions which involve risks and uncertainties associated with our business and the economic environment in which the business operates. All such statements are made pursuant to the ‘safe harbour’ provisions of, and are intended to be forward-looking statements under, applicable Canadian securities legislation. Any statements contained herein that are statements of historical facts may be deemed to be forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution our readers of this press release not to place undue reliance on our forward looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company’s continuous disclosure documents that can be found on SEDAR www.sedar.com. Enablence does not intend, and disclaims any obligation, except as required by law, to update or revise any forward looking statements whether as a result of new information, future events or otherwise.
For further information contact:
Enablence Technologies Inc.
Louis De Jong
+1 613 656-2850 ext. 0
Neither 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.