Enablence Technologies Inc. (TSXV:ENA) announced the completion of a private placement on Wednesday, raising approximately C$25 million. The transaction involved the issuance of 3,226,000 common shares at a price of C$7.75 per share to Collingwood Investments Incorporated. Paradigm Capital Inc. served as the exclusive financial advisor to Enablence, and Bennett Jones LLP provided legal advisory services.
Enablence designs and manufactures planar lightwave circuit optical chips for various applications, including datacom, telecom, artificial intelligence, and advanced vision. The company serves a global customer base focused on data centers and other end markets, with a particular emphasis on emerging applications such as medical devices, automotive LiDAR, and virtual and augmented reality headsets. Enablence operates a fabrication plant in Fremont, California, which manufactures chips for third-party customers in select strategic circumstances.
The proceeds from the private placement will be used for planned capital expenditures to expand capacity at fabrication facilities in Silicon Valley and Vietnam, working capital to support growing sales volumes, and general corporate purposes. The common shares issued are subject to a statutory hold period of four months and one day under Canadian securities laws. The offering remains subject to final acceptance of the TSX Venture Exchange.
Enablence entered into an investor rights agreement with Collingwood Investments Incorporated concurrent with the closing, providing pro rata pre-emptive rights on future equity issuances and certain top-up rights. A copy of the agreement is expected to be available on SEDAR+ under the company's issuer profile.
