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Enablence Technologies Provides Update on Recapitalization Transaction and Announces Amendment of Senior Loan Agreement
Enablence Technologies Provides Update on Recapitalization Transaction and Announces Amen...
About this update from Enablence Technologies Inc.
[{"type":"text","content":"\n \n \n \n Enablence Technologies Provides Update on Recapitalization Transaction and Announces Amendment of Senior Loan Agreement\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n OTTAWA, ON\n \n ,\n \n Nov. 15, 2021\n \n /CNW/ - Enablence Technologies Inc. (\"\n \n Enablence\n \n \" or the \"\n \n Company\n \n \") (TSXV: ENA), a supplier of optical components and subsystems, is pleased to provide an update on its previously-announced recapitalization transaction (the \"\n \n Recapitalization Transaction\n \n \"). Notably, the Shares-for-Debt Settlements and Consolidation (each as defined below) are expected to close prior to the end of\n \n November 2021\n \n . In addition, Enablence has agreed to amend and restate its existing loan agreement with a related party to allow for further advances of up to\n \n C$2 million\n \n to the Company to cover operating costs through the closing of the Recapitalization Transaction and while discussions continue with potential investors relating to additional equity investments into the Company.\n \n \n \n \n Shares-for-Debt Settlements\n \n \n \n \n As previously announced, the Company entered into debt settlement agreements with certain unsecured creditors holding an aggregate of\n \n C$41,397,844.11\n \n of the total unsecured debt of the Company (collectively, the \"\n \n Existing Debt Settlements\n \n \"), representing approximately 95% of the total balance of debts proposed to be settled as part of the Recapitalization Transaction. The remaining unsettled debts held by unsecured creditors total\n \n C$1,955,863.59\n \n (collectively, the \"\n \n Remaining Debt\n \n \"). As of the date hereof, the holders of the Remaining Debt have not agreed to enter into a Shares-for-Debt Settlement with the Company.\n \n \n Certain major creditors who have agreed to Shares-for-Debt Settlements have a closing condition in their favour requiring that 100% of the Remaining Debt enter into a Shares-for-Debt Settlement with the Company to convert such Remaining Debt on the same terms noted above (the \"\...