Enablence raises funds for expansion
OCTOBER 25, 2007 By Stephen Hardy � Enablence Technologies Inc. has raised $57.5 million in an oversubscribed public offering. According to CEO Arvind Chhatbar, at least some of those funds are earmarked for acquisitions.
OCTOBER 25, 2007 By Stephen Hardy � Enablence Technologies Inc. (search for Enablence) has raised $57.5 million in an oversubscribed public offering. According to CEO Arvind Chhatbar, at least some of those funds are earmarked for acquisitions.
Enablence produces PLC-based triplexers and diplexers for the FTTH market (as explained here), as well as technology for defense and aerospace applications. Chhatbar says he is interested in vertical integration, particularly when it comes to the FTTH line. This could include bringing some functions now performed outside of the company in-house to improve margins and control. Chhatbar also suggested that the company is interested in expanding its product line.
Chhatbar says that the company has potential acquisition targets in mind, and said deals could be consummated by the end of the year "if all goes well."
Other uses of the additional funding include research, marketing, working capital, and "general corporate purposes," according to a company press release.
Enablence issued an aggregate of 42,592,665 common shares (including 5,555,565 common shares issued pursuant to the exercise by the agents of the over-allotment option in full) at a price of $1.35 per share. Paradigm Capital Inc. led the syndicate of agents, which included Haywood Securities Inc., Raymond James Ltd., and Dundee Securities Corporation. The agents received aggregate fees equal to 6% of the gross proceeds of the offering and compensation options equal to 3% of the common shares sold as part of the offering exercisable for common shares of the corporation at an exercise price of $1.35 per share for a period of 18 months.
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