Showing posts with label Enablence. Show all posts
Showing posts with label Enablence. Show all posts

Friday, June 23, 2017

Enablence announces financing

Enablence Technologies of Ottawa and Fremont, California, a supplier of optical components and subsystems for access, metro and long-haul markets, announced that under the previously announced private placement of common shares it has received commitments to purchase 8,542,857 common shares of the company, representing additional gross proceeds of approximately C$600,000, with the transaction expected to close by the end of June 2017.

Enablence stated that it also intends to complete its previously announced private placement financing of up to C$6 million principal amount of unsecured convertible debentures on or about June 30, 2017, subject to the approval of the TSX Venture Exchange. The company noted it has received indication of interest for approximately C$6 million principal amount of debentures.

The debentures will bear interest at a rate of 10% per annum, payable quarterly commencing September 30, 2017. The debentures will be convertible, at the option of the holder, into shares at a price of 8c per share representing a conversion rate of approximately 12,500 shares per C$1,000 principal amount of debentures.

Under the same terms as the financings, certain investors have advised that they will enter into debt settlement agreements with Enablence to settle outstanding cash advances totalling C$2 million through the issuance of 7,142,857 shares for an aggregate value of C$500,000, and the issuance of C$1.5 million principal amount of debentures, subject to the approval of the TSX Venture Exchange.

Enablence intends to use the proceeds from the financings as growth capital for current and future products and general corporate purposes. A portion of the funds will be used to fund a capex program to expand the production of the company's planar lightwave circuit (PLC) chips to satisfy both existing purchase orders and anticipated future demand for its metro market-focused 100 Gbit/s TxRx products.

In addition, some of the funding will be used to complete the development of the 100 Gbit/s TxRx product for the data centre market and for R&D activities relating to its next generation 200/400 Gbit/s products. Remaining funding will be used for general corporate purposes and working capital.



* Enablence announced in April that it expected to complete new financing of approximately C$6 million. The company also reported that it expected complete the execution of a LoI as announced December 2016 to raise funds of C$10 million to support growth via a non-brokered private placement of common shares at 7c per share for gross proceeds of approximately C$4 million, plus a non-brokered private placement of C$1,000 principal amount of unsecured convertible debentures for gross proceeds of up to C$2 million.


Tuesday, April 11, 2017

Enablence to raise C$6m for PLCs

Enablence Technologies of Ottawa and Fremont, California, a supplier of optical components and subsystems for access, metro and long-haul markets, announced its intention to complete additional financing for approximately C$6 million.

Enablence also announced the termination, by mutual agreement, of the non-binding letter of intent (LoI) with Esrey Energy as announced on December 8, 2016, under which the two companies proposed to implement a business combination. Esrey is a Canadian exploration and development company focused on developing oil and gas reserves in Papua New Guinea and Bulgaria.

However, Enablence stated that it expects to meet its stated goal as announced at the same time for the execution of a LoI to raise funds of C$10 million to support growth. The company plans to achieve this via a combination of the exercise of outstanding warrants, the private placements completed in December 2016 and January 2017, which totalled approximately C$4 million, cash advances of C$2 million and with the closing of financings.

As previously announced, Enablence intends to use the funds as growth capital for current and future products and for general corporate purposes. Part of the funding will be used for a capex program to expand the production of its planar lightwave circuit (PLC) chips to meet demand resulting from both existing purchase orders and anticipated demand for its metro market-focused 100 Gbit/s TxRx products.

In addition, a portion of the funds will be allocated to complete the development of a new 100 Gbit/s TxRx product targeting the data centre market and for R&D activities relating to next generation 200/400 Gbit/s products.

To raise the C$10 million funding, Enablence intends to complete a non-brokered private placement financing of common shares at 7c per share for gross proceeds of approximately C$4 million and to conduct a non-brokered private placement of C$1,000 principal amount of unsecured convertible debentures for gross proceeds of up to C$2 million.


As part of the financing, certain investors propose to enter into debt settlement agreements with Enablence to settle outstanding non-interest bearing cash advances totalling C$2 million through issuing 7.14 million shares for an aggregate C$500,000 and the issue of C$1.5 million principal amount of debentures, subject to approval by the TSX venture exchange.

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