Enablence Technologies Inc.
TSX VENTURE : ENA

Enablence Technologies Inc.

March 01, 2007 14:04 ET

Enablence Successfully Completes a Financing Round of $15 Million

OTTAWA, ONTARIO--(CCNMatthews - March 1, 2007) - NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO THE US NEWSWIRE SERVICES

Enablence Technologies Inc. ("Enablence" or the "Corporation") (TSX VENTURE:ENA), a developer of Fiber-to-the-Home (FTTH) Transceivers for optical modems, today announced that it has completed a private placement of 25,000,000 common shares at a price of $0.60 per share for gross proceeds of $15 million (the "Financing"). The proceeds will be used to expand product lines, pursue new opportunities in the Fiber-to-the-Home market and for general working capital.

The syndicate was led by Paradigm Capital Inc. and included Wellington West Capital Markets Inc. and Raymond James Ltd as syndicate partners. The agents received aggregate fees equal to 7 % of the gross proceeds of the Financing and compensation options exercisable for common shares of the Corporation equal to 7% of the common shares sold as part of the Financing at an exercise price of $0.60 per share for a period of 24 months. All securities issued as part of the Financing are subject to a four month statutory and TSX Venture Exchange hold periods. The common shares, including those underlying the compensation options, have not been registered in the U.S. Securities Act of 1933, as amended (the "Act") and may not be sold or offered for sale in the United States or otherwise distributed in the United States unless they are registered under the Act or an exemption therefrom is available.

"The proceeds of the Financing will bring the total financing to $33M which will allow Enablence to capitalize on new complementary product solutions while continuing with our current plans for the introduction and mass production of Planar Lightwave Circuit based diplexers and triplexers," explained Mr. Chhatbar. "It will also strengthen Enablence's leadership position within the emerging Fiber-to-the-Home market.".

About Enablence Technologies Inc.

Enablence products are used in optical modems that are located inside the consumer's homes (i.e. for the delivery of high speed data/voice/video). Enablence designs and manufactures optical components, in particular triplexers and diplexers, using its proprietary Planar Lightwave Circuit (PLC) "Dispersion Bridge" platform, for the Fiber-to-the-Home (FTTH) market. These devices are filters that are embedded on a chip that are capable of processing optical signals at a low cost. Enablence is a fabless optical components company.

Forward Looking Statements

The statements in this press release may contain forward looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Corporation's expectations and projections. The TSX Venture Exchange has not approved this press release and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Enablence Technologies Inc.
    Arvind Chhatbar
    Chief Executive Officer
    613-270-7859