Optical components and subsystems vendor Enablence Technologies Inc. (TSX VENTURE:ENA) says it has secured non-brokered private placement financing of up to CAN$10 million. It also announced that former CEO Jacob Sun will leave its board of directors.
The new funding will be doled out in tranches, based on the issuance of up to 66,666,666 common shares of the company at a price of CAN$0.15 per share. The shares are subject to a four-month hold period due to securities laws. The first tranche is expected to close around June 25, 2014, with the final tranche closing on or about July 30, 2014.
Enablence expects to use the funds to increase capacity and to speed development of new, integrated products.
"This financing includes strategic investors who will bring a wide range of industry expertise, manufacturing experience, and future business to Enablence. This represents a major endorsement of Enablence's current products and long-term strategy to establish leadership in the integrated photonics market," commented Louis De Jong, Chairman of Enablence.
Sun joined Enablence in 2008 when the company bought his former employer, ANDevices (see “Enablence Technologies to acquire ANDevices”). He became a director of Enablence in March 2012 while serving as the company’s chief operating officer, and was appointed CEO in October 2013. He stepped down from the CEO role this past May and was replaced by Enablence’s former chief strategic officer, Evan Chen.
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