Non-brokered offering negotiated alongside C$3 million 18-month loan
By Devika Patel
Knoxville, Tenn., Sept. 18 – Enablence Technologies Inc. said it raised C$615,000 in the second tranche of a non-brokered private placement of units. The deal priced for at least C$4 million on Aug. 21 and raised C$210,000 on Sept. 14.
The company is selling units of one common share and a half-share warrant at C$0.05 per unit. It sold 4.2 million units in the first tranche and 12.3 million units in the second.
The whole warrants are each exercisable at C$0.06 for 18 months. The strike price is a 50% premium to the Aug. 20 closing share price of C$0.04.
The financing is conditional upon the company completing a term loan facility for up to C$3 million. The 18-month loan has been arranged with a senior, investment-grade lender and is conditional upon the units being sold. The company also arranged to convert up to C$3 million of non-secured debt into equity.
Proceeds will be used to repay debt, to increase capacity to meet current and expected demand associated with recent contracts and for development.
Based in Ottawa, Enablence designs and manufactures optical components.
| Issuer: | Enablence Technologies Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$4 million (minimum)
|
| Price: | C$0.05
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.06
|
| Agent: | Non-brokered
|
| Pricing date: | Aug. 21
|
| Settlement dates: | Sept. 14 (for C$210,000), Sept. 18 (for C$615,000)
|
| Stock symbol: | TSX Venture: ENA
|
| Stock price: | C$0.04 at close Aug. 20
|
| Market capitalization: | C$12.83 million
|
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