Enablence Announces Extension of Closing of Additional Tranches of Financing
Ottawa, Canada – July 30, 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 additional tranches of the financing previously announced on June 17, 2014 are now expected to close in late August 2014 and early September 2014.
The total financing, inclusive of the first tranche of $1 million which closed on June 26, 2014, is expected to raise up to an amount of $10 million (the “Financing”) at a price of $0.15 per share resulting in the issuance of up to 66,666,666 common shares of the Company. Certain new strategic investors, which includes ZTE Corporation , either directly or through an affiliate, and Shanghai QSY Technologies Co., Ltd.,are expected to finance up to $8 million of additional tranches of the Financing.
The Financing is subject to several conditions including but not limited to: TSX Venture Exchange approval, approval of the boards of the strategic investors and approval of certain Chinese government authorities. Any shares issued in connection with the Financing will be subject to a four month restricted period.
The proceeds from the Financing are expected to enable the Company to increase capacity to meet current and expected future demand associated with a number of recent contracts awarded by telecommunications equipment vendors. Enablence will also accelerate development of next generation integrated products to meet customer demands.
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 additional tranches of the financing transaction and the strategic investors, 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.