Enablence closes C$25 million private placement

OTTAWA - Enablence Technologies Inc. (TSXV:ENA) recently concluded a private placement, issuing 3.226 million of its common shares at C$7.75 per share, generating gross proceeds of around C$25 million, as reported in a press release. The company, which manufactures planar lightwave circuit optical chips for applications in datacom, telecom, artificial intelligence, and advanced vision, plans to utilize the net proceeds for various purposes.

These include expanding capacity at its fabrication facilities located in Silicon Valley and Vietnam, maintaining working capital to cater to growing sales volumes, and fulfilling general corporate objectives. Simultaneously, Enablence entered into an investor rights agreement with Collingwood Investments Incorporated, which includes provisions for pro rata pre-emptive rights on upcoming equity issuances and certain top-up rights for the investor.

This agreement is documented on SEDAR+ under the company's issuer profile. The common shares are subjected to a statutory hold period of four months and one day, as per Canadian securities laws. The offering is currently pending final acceptance from the TSX Venture Exchange. Paradigm Capital Inc. acted as the exclusive financial advisor to Enablence, entitled to an advisory cash fee equivalent to 5% of the gross proceeds.

Bennett Jones LLP served as the legal advisor for the company. Enablence's products cater to a global customer base, primarily in data center and other end markets, while also collaborating with clients on emerging market applications such as medical devices, automotive LiDAR, and virtual and augmented reality headsets. The company maintains a fabrication plant in Fremont, California, which produces chips for third-party customers under specific strategic conditions.