Enablence Technologies Announces the Completion of its
Debt to Equity Transaction
Ottawa, Canada – October 23, 2015 – 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 completion of the conversion of approximately $3.7 million of debt to equity (the “Transaction”), previously announced by the Company on September 14, 2015. As a result of the Transaction, 70,527,750 shares and 25,740,065 Warrants were issued. The securities are subject to a four month hold period expiring on February 24, 2016.
Approximately $2.7 million of debt was converted to equity at a price of $0.0525 per unit (“Unit). Each Unit will be comprised of one common share and one half of one common share purchase warrant (“Warrants”). Each full Warrant is exercisable for a period of 18 months at an exercise price of $0.07 per Warrant. An additional $1.0 million of debt was converted to equity at a price of $0.0525 per share with an insider of the Company, Irixi Holding Ltd. (the “Insider”). No warrants were issued to the Insider.
The Insider is considered a related party within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The independent directors of the Company unanimously approved the Transaction and have determined that an exemption is available from the formal valuation requirements and minority shareholder approval requirements under MI 61-101. The directors appointed by China TriComm Ltd., an affiliate of the Insider, abstained from voting on this matter. The participation of the Insider was previously identified in the Company’s press release on September 14, 2015.
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 future sales and orders, funding of ongoing operations based on current expectations, 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.
+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.