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Date Announced: 15 Dec 2014
Future R&D and supply agreement between Enablence and ZTE.
OTTAWA, CANADA--(Marketwired - Dec. 15, 2014) - Enablence Technologies Inc. ("Enablence" or the "Company") (TSX VENTURE:ENA), a leading supplier of optical components and subsystems for access, metro and long-haul markets, today announced the closing of $2.7 million CAD of a non-brokered private placement financing investment by ZTE Corporation (the "Financing"). The Financing is an extension of the previously announced financing of up to $10 million in July 2014 that the Company has undertaken over the last several months, some of which was delayed because of various third party approval processes.
The Company also announced today that it has entered into a continuing Business Cooperation Agreement with ZTE Corporation (the "Agreement"). This Agreement outlines existing and future research and development and product supply collaboration between Enablence and ZTE Corporation. Products covered under the Agreement include Enablence's advanced TOSA / ROSA products which are based on Enablence's unique hybrid integration technology. The volume requirements of ZTE for products covered under this Agreement are expected to increase significantly during the next 12 to 24 months and Enablence is expected to meet certain milestones in connection with the Agreement.
The Financing was completed at a price of $0.15 per share resulting in the issuance of 18,000,000 common shares of the Company. The shares are subject to a four month hold period pursuant to applicable securities laws. A finder's fee of 6%, namely, 1,080,000 common shares of the Company, was also paid to an arm's length party, MHW Capital Co., Ltd., and these shares are also subject to a four month hold period pursuant to applicable securities laws.
The proceeds from the Financing are expected to meet certain obligations including the repayment of certain bridge and short term loans and provide working capital to the Company.
ZTE Corporation is a globally-leading provider of telecommunications equipment and network solutions. With operations in 160 countries, the company is a leader in technology innovation, delivering superior products and business solutions to clients all over the world. Founded in 1985, ZTE is listed on both the Hong Kong and Shenzhen Stock Exchanges and is China's largest listed telecoms equipment company.
Source: Enablence Technologies
E-mail: via web site
Web Site: www.enablence.com
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