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Enablence Locations

Canada
Enablence Technologies, Inc.
390 March Road, Suite 119
Ottawa,Ontario K2K 0G7

Tel: +1 (613) 656-2850
Fax: +1 (613) 656-2855

USA
Enablence USA Components, Inc.
2933 Bayview Drive
Fremont, CA 94538

Tel: +1 (510) 226-8900
Fax: +1 (510) 226-8333

Enablence in the US

Enablence Technologies Provides an Update on Financings

Not for distribution to United States newswire services or for dissemination in the United States

Ottawa, Canada – June 21, 2017 – Enablence Technologies Inc. (“Enablence” or the “Company”) (TSXV: ENA), a leading supplier of optical components and subsystems for access, metro and long-haul markets, announces that under the previously announced private placement of common shares (the “Equity Financing”) it has received commitments to purchase 8,542,857 common shares of the Company (the “Shares) representing additional gross proceeds of approximately $600,000. The Company expects to close such subscriptions by the end of June 2017.

The Company also intends to complete the previously announced private placement financing (together with the Equity Financing, the “Financings”) of up to $6 million principal amount of unsecured convertible debentures (the “Debentures”) on or about June 30, 2017, subject to the approval of the TSX Venture Exchange. The Company has received indication of interest for approximately $6 million principal amount of Debentures. The Debentures will bear interest at a rate of 10% per annum, payable quarterly commencing on September 30, 2017. The Debentures will be convertible, at the option of their holder, into Shares at a price of $0.08 per Share representing a conversion rate of approximately 12,500 Shares per $1,000 principal amount of Debentures. The Debentures will mature 36 months after their issuance.

Under the same terms as the Financings, certain investors have advised the Company that they will enter into debt settlement agreements with the Company to settle outstanding cash advances totalizing $2 million by the issuance of 7,142,857 Shares for an aggregate value of $500,000 and the issuance of $1.5 million principal amount of Debentures, subject to the approval of the TSX Venture Exchange.

The proceeds from the Financings, as previously announced, are intended to be used as growth capital for current and future products, plus general corporate purposes. A portion of the funds will be used to fund a capital expenditure program to expand the production of the Company’s Planar Lightwave Circuit (PLC) chips. This expansion is needed to satisfy existing purchase orders and anticipated future demand of the Company’s metro market focused 100G TxRx products. A portion of the funds will also be allocated to complete the development of the 100G TxRx product for the fast growing data centre market and for research and development activities focused on the Company’s next generation 200/400G products. The balance of the funds will be used for general corporate purposes and working capital.

The securities which will be issued under the Financings are subject to a four-month hold period pursuant to applicable securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, or for the account or benefit of U.S. persons (as such term is defined in Regulation S under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”)). The securities have not been and will not be registered under the U.S. Securities Act or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a “U.S. person” (as defined in Regulation S under the U.S. Securities Act) unless an exemption from such registration is available.

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.

Forward-looking Statements

This press release may contain forward-looking statements regarding the Financings, debt to equity conversion and the anticipated use of proceeds are 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.

Evan Chen

CEO

+1 613 656-2850 ext. 3

 

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.

 

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