ENABLENCE TECHS INC - ENAFF STOCK NEWS

Enablence Technologies Inc. (TSXV: ENA) has secured a C$5.975 million subordinated secured non-revolving term loan from Pinnacle Island II LP. The loan bears a 12% annual interest rate with a maturity date of July 31, 2025. Additionally, the company amended its existing loan with Pinnacle Island LP, increasing it by C$410,000 to a total of C$9.435 million.

CEO Todd Haugen stated that this financing will provide added capacity and flexibility for the company's strategic growth plan, focusing on PLC-based advanced vision and AI products. The funds will also accelerate the commercialization of new optical devices for datacom and telecom businesses.

The company also entered into agreements with Vortex ENA LP to allow for additional indebtedness and amended the intercreditor agreement among the secured lenders. These transactions are considered related party transactions under MI 61-101, but the company is relying on exemptions from formal valuation and minority shareholder approval requirements.

Enablence Technologies Inc. (TSXV: ENA), a leader in optical chips and subsystems for various applications, has announced its Q3 2024 financial results. For the quarter ending March 31, 2024, revenue dropped by 16% to $412K from $492K in the same period last year due to market cyclicality. NRE revenues fell by 34% to $142K. The gross margin decreased by $292K to -$610K, primarily due to higher material and labor costs. However, the net loss improved slightly to $2.52M from $2.85M in Q3 2023, attributed to reduced operating expenses. Strategic product lines, particularly in advanced vision and AI, showed rapid growth, accounting for over 34% of sales. Enablence expects revenue growth from investments in new tooling and processes to be reflected in Q4FY24 and beyond.

Enablence Technologies has introduced new PLC-based FR4 wavelength management optical products aimed at high-speed data center applications. These FR4 devices support telecommunications, data centers, and fiber to home uses, enabling cost-effective, high-speed data transmission and reduced crosstalk. The new products have already driven business growth in North America and are expected to further accelerate shipments due to high demand. CEO Todd Haugen emphasized the alignment of these products with customer needs and their potential to lower network implementation costs, particularly for data centers. Enablence is committed to expanding its product pipeline in datacom, advanced vision, and AI optical products, with the new FR4 transceivers offering improved power efficiency and enhanced data transfer rates.

Enablence Technologies Inc. secures an additional term loan of C$4.725 million through a Loan Amendment with Pinnacle Island LP to accelerate commercialization of new optical devices and strengthen operational capabilities. The loan bears an interest rate of 12% per annum and matures on July 31, 2025. The Company intends to use the funds to finance its working capital requirements.

Enablence Technologies' CEO Todd Haugen participates in a Lightwave Magazine industry panel to discuss how AI is revolutionizing the optical and networking industry. The company will showcase its AI and advanced vision product lines at the upcoming OFC Conference, along with an extended roadmap of PLC-based devices for optical computing and interconnectivity. Enablence aims to deliver high-power handling capacity and low loss optics solutions, driving growth in the optics sector over the next decade.

Enablence Technologies Inc. announces successful outcomes from its annual shareholders' meeting, including the approval of key resolutions and new appointments.

Enablence Technologies Inc. reports increased diversification driving predictability with significant new product releases, dominating customer interest. The company's Q2 2024 financial statements show 53% of revenues from advanced vision and AI products, with a growing sales pipeline and customer contracts visibility. New products in LiDAR, Datacoms, and 400G generation are released, with 800G and DWDM products in the pipeline for Q1 Fiscal 2025. AI products are on track for volume production in Q4, setting the stage for a strong fiscal year 2025.

Enablence Technologies Inc. announced a debt financing package provided by Pinnacle Island LP to support the strategic growth plan, including a subordinated secured non-revolving term loan and an amendment to an existing convertible debenture. The funding will accelerate the development and commercialization of new photonics products, with additional details on the loan facility and convertible debenture amendment provided in the press release.

Enablence Technologies and Polar Semiconductor have announced a strategic partnership to develop and manufacture optical semiconductors, with Enablence ramping up product development and making significant investments in critical tool sets. The collaboration provides Enablence access to high-quality tool sets, proven production processes, and capacity to meet new demand, while Polar Semiconductor gains an opportunity to expand its footprint within the optoelectronics market. The partnership is expected to accelerate the development and release of advanced new optical products to the market.