Enablence Technologies Inc.
TSX VENTURE : ENA

Enablence Technologies Inc.

May 12, 2009 09:30 ET

Enablence Technologies Raises $13.8 Million

OTTAWA, CANADA--(Marketwire - May 12, 2009) - NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO U.S. NEWS WIRE SERVICES.

Enablence Technologies Inc. ("Enablence" or the "Corporation")(TSX VENTURE:ENA), a global leader in optical communications which provides Planar Lightwave Circuit (PLC) based products for Fiber-to-the-Home (FTTH), metro and long-haul markets, is pleased to announce that it has successfully completed its public offering.

The Corporation issued an aggregate of 46,000,000 common shares (including 6,000,000 common shares pursuant to the exercise by the Agents of the over-allotment option in full) at a price of $0.30 per share for total gross proceeds of $13,800,000 (the "Offering"). Certain insiders, namely, Arvind Chhatbar, President and Chief Executive Officer, Ronald Benn, Vice President, Finance and Stephen Bower, a director of the Corporation subscribed under the Offering for an aggregate of 6,866,667 common shares for gross proceeds of $2,060,000.

The Corporation anticipates using the net proceeds of the Offering for working capital, particularly to strengthen the Corporation's balance sheet, expansion of product lines, vertical integration and for general corporate, research and development, and marketing activities.

"We are pleased with the support from the investment community for this raise at a difficult time in the market" announced Arvind Chhatbar, Chief Executive Officer of Enablence. "The additional cash resources will allow Enablence to continue to grow its revenue and customer base" added Mr. Chhatbar.

The syndicate of agents in respect of the Offering was led by Paradigm Capital Inc., and included Haywood Securities Inc. and Raymond James Ltd. (together, the "Agents"). The Agents received a commission equal to 6% of the gross proceeds of the Offering, except with respect to purchases made by the Corporation's insiders and advisors, and compensation options entitling the Agents to purchase that number of common shares equal to 4% of the common shares sold pursuant to the Offering. Each compensation option is exercisable to acquire one common share of the Corporation at an exercise price of $0.30 per share for a period of 18 months.

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 Technologies Inc., (TSX VENTURE:ENA) a publicly-traded company headquartered in Ottawa, Canada, designs, manufactures and sells optical components, subsystems and systems to a global customer base.

Enablence's Systems Division has an expanding Fiber-to-the-Premises (FTTP) product portfolio featuring a variety of architectural options. It enables service providers to evolve their access networks from traditional copper-based networks to advanced optical communications access networks that are based on state of the art IP and Ethernet standards, for triple play voice, video and data services including HDTV, IP Telephony and ultrafast internet access. The Division's network equipment has been implemented at over 420 services providers world-wide that serve over 4 million subscribers.

Enablence's Optical Components and Subsystems Division is a global leader in applying Planar Lightwave Circuit (PLC) technology to integrate multiple components into a single optical chip to reduce footprint and costs. Network and equipment designers around the world turn to Enablence for a variety of components and subsystems for access, metro and long-haul including transceivers, splitters, waveguides, optical channel monitors, multiplexers, ROADMs, switches, tuneable dispersion compensators, and photodiodes. The Division serves over 120 system and subsystem developers and its products have been integrated in all major communications networks world-wide, serving tens of millions of subscribers.

Forward Looking Statements

This press release may contain forward looking statements, in particular with respect to the Corporation's use of proceeds of the Offering, growth of revenue and customer base, that are made as of the date hereof and 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 Corporation's most recent short form prospectus and the Corporation's continuous disclosure documents that can be found on SEDAR www.sedar.com. Enablence does not intend, and disclaims any obligation, expect 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.

Contact Information

  • Enablence Technologies Inc.
    Ronald Benn
    Vice President, Finance
    613-270-7865
    www.enablence.com