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OTTAWA, ONTARIO--(Marketwired - Feb 2, 2016) - 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 non-brokered private placement with ZTE Corporation ("ZTE") announced on January 29, 2016 for 77,000,000 common shares at a price of $0.06 per common share for proceeds of $4.62 million. All securities will be subject to a four month hold period pursuant to applicable securities laws expiring June 3, 2016. As a result of the closing, ZTE holds approximately 19.11% of the issued and outstanding shares of the Company.
As part of the Financing, (i) ZTE entered into a voting agreement with certain shareholders of the Company to vote in favour of one nominee of ZTE to the Board of Directors of the Company, (ii) ZTE will have a right of participation to maintain its percentage of shareholdings in the Company in future issuances of securities by the Company, and (iii) the Company has put in place a Product Roadmap Development Committee which will make recommendations to the Board of Directors on future product development.
The proceeds from the Financing are expected to be used to meet the working capital requirements of the Company and for the repayment of certain loan arrangements.
ZTE Corporation is a globally-leading provider of telecommunications equipment and network solutions. With operations in 160 countries, the company is a leader in technology innovation, delivering superior products and business solutions to clients all over the world. Founded in 1985, ZTE is listed on both the Hong Kong and Shenzhen Stock Exchanges and is China's largest listed telecoms equipment company.
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.
This press release may contain forward-looking statements regarding the completion of the financing transaction, additional financing requirements, funding of ongoing operations, operations becoming profitable, are based on current expectations, future demand for products, 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.
Enablence Technologies Inc.
+1 613 656-2850 ext. 0