Enablence Technologies Inc.

Enablence Technologies Inc.

October 17, 2007 16:46 ET

Enablence Technologies Inc. Prices Prospectus Offering


Enablence Technologies Inc. ("Enablence" or the "Company") (TSX VENTURE:ENA), is pleased to announce that, further to its press release dated September 14, 2007, it has entered into an agency agreement with a syndicate of agents led by Paradigm Capital Inc., and including Haywood Securities Inc., Raymond James Ltd. and Dundee Securities Corporation (collectively, the "Agents") in respect of the offering of common shares (the "Offering") contemplated by the preliminary amended and restated short form prospectus dated September 13, 2007. Under the terms of the Agency Agreement, the Agents will offer, on a best efforts basis, up to 37,037,100 common shares at a price of $1.35 per common share.

The Agents have been granted an over-allotment option for a period of 30 days following the closing of the Offering to arrange for the sale of up to an additional 5,555,565 common shares at the issue price. The Company anticipates filing a final short form prospectus on October 19, 2007. The Offering is expected to close on or about October 25, 2007. Closing is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the applicable securities regulatory authorities and the TSX Venture Exchange.

The net proceeds of the Offering are anticipated to be used for working capital, expansion of product lines, vertical integration, general corporate, and research and marketing activities.

This press release is not an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements.

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.

Forward Looking Statements

Certain statements in this press release are "forward-looking statements", which reflect management's expectations regarding the offering (including the use of proceeds therefrom). All statements other than statements of historical fact contained in this press release are forward-looking statements. Such forward-looking statements involve risks and uncertainties, as they reflect management's current beliefs and are based on information currently available to management. Actual results may differ materially from those anticipated in the statements made. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements are made as of the date of this press release and Enablence assumes no obligation to update or revise them to reflect press events or circumstances except as expressly required by applicable securities law. Further information regarding the uncertainties and risks can be found in the disclosure documents including the amended and restated preliminary prospectus dated September 13, 2007 filed by Enablence with the securities regulatory authorities, available at www.sedar.com.

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