Enablence Announces Closing of Financing and continuing Cooperation Agreement with ZTE Corporation
Ottawa, Canada – December 15, 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 the closing of $2.7 million CAD of a non-brokered private placement financing investment by ZTE Corporation (the “Financing”). The Financing is an extension of the previously announced financing of up to $10 million in July 2014 that the Company has undertaken over the last several months, some of which was delayed because of various third party approval processes.
The Company also announced today that it has entered into a continuing Business Cooperation Agreement with ZTE Corporation (the “Agreement”). This Agreement outlines existing and future research and development and product supply collaboration between Enablence and ZTE Corporation. Products covered under the Agreement include Enablence’s advanced TOSA / ROSA products which are based on Enablence’s unique hybrid integration technology. The volume requirements of ZTE for products covered under this Agreement are expected to increase significantly during the next 12 to 24 months and Enablence is expected to meet certain milestones in connection with the Agreement.
The Financing was completed at a price of $0.15 per share resulting in the issuance of 18,000,000 common shares of the Company. The shares are subject to a four month hold period pursuant to applicable securities laws. A finder’s fee of 6%, namely, 1,080,000 common shares of the Company, was also paid to an arm’s length party, MHW Capital Co., Ltd., and these shares are also subject to a four month hold period pursuant to applicable securities laws.
The proceeds from the Financing are expected to meet certain obligations including the repayment of certain bridge and short term loans and provide working capital to the Company.
ZTE Corporation is a globally-leading provider of telecommunications equipment and network solutions. With operations in 160 countries, the company is a leader in technology innovation, delivering superior products and business solutions to clients all over the world. Founded in 1985, ZTE is listed on both the Hong Kong and Shenzhen Stock Exchanges and is China’s largest listed telecoms equipment company.
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 and cooperation agreement, additional financing requirements, funding of ongoing operations, operations becoming profitable, are 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
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