Enablence Technologies, a fiber component and subsystems supplier, is taking another step in its realignment effort by signing an agreement with China TriComm and certain company shareholders to raise up to $15 million in new financing.
In the process of getting this new funding it will issue $12 million in common shares and secure a $3 million convertible bridge loan.
The company said it is also taking steps to reduce its debt from about $16 million to about $3 million.
This new financing is part of a long journey that Enablence began in 2011 when it sold off its Trident7 fiber to the home (FTTH) product line it purchased from Wave 7 Optics Aurora Networks for $5.1 million. It also sold off the MAGNM product line that it purchased from Pannaway Technologies.
By selling off its system lines, Enablence refocused its attention on the optical component business with a particular focus on 100G transceivers.
"The closing of this financing will be the culmination of a restructuring process that began 18 months ago." said Louis De Jong, CEO, in a release. "During that time Enablence has shed non-core assets, streamlined its ongoing business, expects to reduce total indebtedness from approximately $19 million to approximately $3 million and will have raised sufficient capital to continue to fund its rapidly growing 100G/s transceiver business."
For more:
- see the release
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