Optical component and subsystems supplier Enablence Technologies Inc. (TSX VENTURE:ENA) says it has approved a non-brokered private placement with ZTE Corp. for 77,000,000 common shares at a price of CAN$0.06 per common share, a total of CAN$4.62 million (US$3.3 million).
Enablence says it will use to the money to support commercial production of 10x10-Gbps optical subassemblies. Some of the proceeds will be used to repay loans.
All of the securities will be subject to a four-month hold period, pursuant to applicable securities laws. Enablence believes ZTE will hold approximately 19.11% of its issued and outstanding shares when the financing closes the first week in February.
This is the second investment ZTE has made in the Canadian company; the first came in 2014 (see "ZTE takes stake in components vendor Enablence").
Enablence has had a turbulent history. Having started as a component supplier, the company engaged in a series of acquisitions that included systems company Wave7 Optics (see "Enablence acquires DuPont Photonics' PLC-based assets,""Enablence climbs food chain with Wave7 Optics acquisition," and "Enablence to add Pannaway Technologies to FTTx Networks Division"). However, the company ran into financial problems and began shedding assets and returning to its roots (see, for example, "Enablence Technologies to sell its Swiss subsidiary" and "Enablence turns to China for financing").
For more information on optical components and suppliers, visit the Lightwave Buyer's Guide.