MARCH 1, 2007 -- Building a war chest as it enters the FTTH transceiver market, Enablence Technologies Inc. (search for Enablence) has completed a private placement of 25 million common shares at a price of $0.60 per share for gross proceeds of $15 million.
In a conversation with Lightwave this afternoon, Arvind Chhatbar, Enablence CEO, explained that the company needs more money to strengthen its position as it enters volume production. In particular, he said the company wants to be in a position to expand its product line or production resources, or enter new "partnerships," without being restrained financially. Chhatbar hinted that Enablence may make further announcements along one or more or these lines later this month.
Part of the impetus for the new round was a desire to "maintain control of our products without being at the mercy of the marketplace," he added.
The syndicate behind the funding round was led by Paradigm Capital Inc. and included Wellington West Capital Markets Inc. and Raymond James Ltd as syndicate partners. Enablence had worked with this group previously when it completed a reverse takeover last July. Chhatbar said the oversubscribed round ended up with approximately 15 investors.
The agents received aggregate fees equal to 7% of the gross proceeds of the financing and compensation options exercisable for common shares of the corporation equal to 7% of the common shares sold as part of the financing at an exercise price of $0.60 per share for a period of 24 months. All securities issued as part of the financing are subject to a four-month statutory and TSX Venture Exchange hold periods.
The current round brings Enablence's total financing to $33 million.
-- S. Hardy and wire services
Visit Enablence