OTTAWA, ON, Nov. 19, 2021 /CNW/ - Enablence Technologies Inc.
("Enablence" or the "Company") (TSXV: ENA), a
supplier of optical components and subsystems, is pleased to
announce that the Company has received TSX Venture Exchange (the
"Exchange") approval for the consolidation of its
outstanding common shares ("Common Shares") on the basis of
one (1) new post-Consolidation Common Share in exchange for each
one hundred and twenty (120) pre-Consolidation Common Shares (the
"Consolidation"). The Common Shares will commence trading on
the Exchange, on a post-consolidation basis, effective at the
opening of trading on November 22,
2021.
The new CUSIP number of the post-Consolidation Common Shares
will be 292483302 and the new ISIN number will be CA2924833023. The
Company will not issue any fractional post-Consolidation Common
Shares. Instead, each fractional share remaining after conversion
will be rounded down to the nearest whole post-Consolidation Common
Share. The Company's name and stock symbol will remain
unchanged following the Consolidation.
A letter of transmittal with respect to the Consolidation has
been mailed to registered shareholders of the Company as part of
the meeting materials sent in connection with the Company's annual
and special shareholders' meeting held on October 26, 2021. The letter of transmittal
contains instructions to registered shareholders on how to receive
a post-Consolidation share certificate or Direct Registration (DRS)
advice.
Update on Closing of Recapitalization
Transaction
As announced on November 15, 2021,
the Company has obtained the necessary approvals to complete
shares-for-debt settlements with certain unsecured creditors
holding an aggregate of C$43,567,844.11 of unsecured debt of the
Company (the "Shares-for-Debt Settlements"). Such unsecured
creditors will be issued (subject to rounding) an aggregate of (i)
12,545,857 post-Consolidation Common Shares, and (ii)
1,577,841 warrants to purchase post-Consolidation Common Shares, in
exchange for the extinguishment of such unsecured debt.
After giving effect to the Shares-for-Debt Settlements,
17,895,261 post-Consolidation Common Shares are expected to be
issued and outstanding (subject to rounding) on a pro forma
basis, of which (i) 5,349,395 Common Shares (or 30%) are expected
to be held by the existing shareholders of the Company, and (ii)
12,545,866 Common Shares (or 70%) are expected to be held by
the unsecured creditors of the Company who have agreed to receive
Common Shares pursuant to Shares-for-Debt Settlements.
The Shares-for-Debt Settlements are expected to close prior to
the end of November 2021.
About Enablence Technologies Inc.
Enablence is a publicly traded company that designs,
manufactures and sells optical components and subsystems to a
global customer base. It utilizes its patented technologies,
including planar lightwave circuit intellectual property, in the
production of an array of photonic components and broadband
subsystems that deliver a key portion of the infrastructure for
current and next-generation telecommunication systems. The
Company's components are key elements in large optical network
infrastructure builds which enable global networking and
large-scale computing for businesses and individuals, including
data centers and 5G telecommunications networks. For more
information, visit www.enablence.com.
Forward-looking Statements
This news release contains forward-looking statements regarding
the Company based on current expectations and assumptions of
management, which involve known and unknown risks and uncertainties
associated with our business and the economic environment in which
the business operates. All such statements are forward-looking
statements under applicable Canadian securities legislation. Any
statements contained herein that are not statements of historical
facts may be deemed to be forward-looking statements. In
particular, this news release contains forward-looking statements
pertaining to the timing and ability of the Company to complete the
Consolidation, if at all. By their nature, forward-looking
statements require us to make assumptions. Assumptions are based in
part on the future capital expenditure levels, the ability to
fulfill the remaining conditions precedent to the closing of the
Shares-for-Debt Settlements and the ability to secure regulatory
approval. These statements are based on current expectations that
involve several risks and uncertainties which could cause actual
results to differ from those anticipated. These risks include, but
are not limited to the terms as described hereof may be amended
following the date hereof; the impact of the evolving COVID-19
pandemic on the Company's business, operations and sales;
uncertainties relating to the ultimate spread, severity and
duration of COVID-19 and related adverse effects on the economies
and financial markets of countries in which the Company operates;
and the ability of the Company to successfully implement its
business continuity plans with respect to the COVID-19 pandemic.
Although the Company believes that the expectations reflected in
the forward looking statements contained in this news release, and
the assumptions on which such forward-looking statements are made,
are reasonable, there can be no assurance that such expectations
will prove to be correct. We caution our readers of this news
release not to place undue reliance on our forward-looking
statements as a number of factors could cause actual results or
conditions to differ materially from current expectations.
Additional information on these and other factors that could affect
the Company's operations are set forth in the Company's
continuous disclosure documents that can be found on SEDAR
(www.sedar.com) under Enablence's issuer profile. Enablence does
not intend, and disclaims any obligation, except as required by
law, to update or revise any forward-looking statements whether as
a result of new information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Enablence Technologies Inc.
