OTTAWA, ONTARIO–(Marketwired – June 30, 2017) –
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Enablence Technologies Inc. (“Enablence” or the “Company”) (TSX VENTURE:ENA), a leading supplier of optical components and subsystems for access, metro and long-haul markets, today announced the closing of the previously announced private placement of unsecured convertible debentures (the “Debentures”) for gross proceeds of approximately $6 million (the “Debenture Offering”).
The Debentures bear interest at a rate of 10% per annum, payable quarterly commencing on September 30, 2017 and are convertible, at the option of their holder, into common shares of the Company (the “Shares”) at a price of $0.08 per Share representing a conversion rate of approximately 12,500 Shares per $1,000 of principal amount of Debentures. The Debentures will mature on June 30, 2020.
As previously announced, the Company also entered into a debt settlement agreement with a creditor to settle outstanding cash advances totalling $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 (the “Securities for Debt Transaction”).
The securities issued under the Debenture Offering and the Securities for Debt Transaction are subject to a four-month hold period pursuant to applicable securities laws until October 31, 2017.
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).
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 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.
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.
Evan Chen
CEO
+1 613 656-2850 ext. 0