Enablence Announces closing of Bridge Financing
Ottawa, Canada – September 26, 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 that it has closed the bridge loan as previously announced on September 10, 2014, in the amount of $720,000 (“Bridge Loan”). As noted in the Company’s press release dated September 10, 2014, several of the persons who provided loans are insiders of the Company and related parties under Multilateral Instrument 61-101.
The Bridge Loan is unsecured and non-interest bearing and will be repaid by the Company on or prior to November 30, 2014. Those persons that have provided the Bridge Loan have been issued warrants exercisable at a price of $0.15 for an aggregate of 4,799,998 common shares of the Company, which expire in one year. The common shares issuable upon the exercise of the warrants are subject to a four month hold period which will expire January 26, 2014.
In addition, Irixi Holdings Ltd., an affiliate of China TriComm Ltd., and an insider of the Company, extended a further short-term, non-interest bearing, unsecured loan (“Short-Term Loan”) in the amount of $120,000, there were no warrants issued in respect of this additional amount. This Short-Term Loan is expected to be repaid by the Company on or prior to November 30, 2014.
This Bridge Loan and the Short-Term Loan are to assist the Company as part of the larger equity financing previously announced on June 17, 2014 (“Financing”) and September 10, 2014. The Company now expects the next tranche of the Financing to close by the end of October, subject to a new approval by the TSX Venture Exchange.
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.