Enablence Technologies Agrees to C$25 Million Equity Investment From Collingwood

Enablence Technologies Inc. has agreed to a C$25 million equity investment from Collingwood Investments Incorporated, a financing that would add a new large shareholder and give the photonics-chip maker fresh capital for manufacturing expansion and working capital. The agreement was announced September 15, with closing expected by the end of September if the required conditions and approvals are satisfied.

Under the agreement, Enablence would issue 3,226,000 common shares at C$7.75 each. The company said that price is about 21% above the closing price of its shares on the TSX Venture Exchange on September 14. Collingwood did not beneficially own or control any Enablence common shares before entering the agreement.

Using the 21,072,195 shares that Enablence said would be outstanding immediately before the financing, the new issuance would lift the total to 24,298,195 shares, assuming no other change before closing. Collingwood would then own about 13.3% of Enablence, making the investment meaningful not only for the amount of capital raised but also for the ownership structure that would follow.

Collingwood would become a 13.3% shareholder

The planned share purchase comes with investor rights that extend beyond the initial C$25 million investment. At closing, Enablence and Collingwood are expected to enter an investor rights agreement giving Collingwood pro rata pre-emptive rights on future issuances of equity securities, including securities convertible into equity, subject to customary exceptions. In practical terms, those rights would give the investor an opportunity to participate in later financings to help preserve its ownership percentage.

Those rights are not open-ended. Enablence said the agreement would terminate if Collingwood’s ownership falls below 5% of the company’s common shares or if the parties agree in writing to end it. The 3,226,000 shares issued in the financing would also be subject to a statutory hold period of four months and one day from issuance under applicable Canadian securities laws.

Collingwood said it is acquiring the shares for investment purposes. The investor has no current plan, according to Enablence’s disclosure, to take the types of additional actions listed in the early-warning rules, although it may later buy or sell securities depending on market conditions, its view of Enablence and other relevant factors. Collingwood is part of the Bragg Group of Companies, an Oxford, Nova Scotia-based private enterprise whose holdings include Oxford Frozen Foods, Eastlink and Inland Technologies.

The financing has not closed yet. Enablence identified customary closing conditions, execution of the investor rights agreement and necessary approvals as requirements, and its forward-looking disclosure specifically included acceptance by the TSX Venture Exchange among the items that could affect completion. Paradigm Capital is acting as Enablence’s exclusive financial adviser, while Bennett Jones is serving as legal adviser.

Equity is aimed at more photonics manufacturing capacity

Enablence plans to use the net proceeds for capital spending to expand capacity at its operations in Silicon Valley and Vietnam, working capital to support higher sales volumes, and general corporate purposes. That wording matters because the C$25 million is not being presented as funding for a single plant or product program. The planned use is broader, with manufacturing capacity and day-to-day growth funding both part of the allocation.

The company designs, manufactures and sells optical components, primarily planar lightwave circuits on silicon-based chips, for markets that include data centers, telecommunications, artificial-intelligence infrastructure and advanced sensing. Its manufacturing model includes wafer fabrication in Fremont, California, alongside assembly and packaging capacity in Vietnam through its work with ShunYun Technology.

That Vietnam operation moved closer to scaled production in August. Enablence said all major production-line equipment at ShunYun’s Vietnam site had been qualified and that initial production samples had been released to North American customers for evaluation. The company described a supply chain in which chip design is carried out in Ottawa, wafer fabrication and specialized processing take place in Fremont, and high-volume packaging and assembly are handled in Vietnam.

The capacity push was already visible in Enablence’s latest published operating disclosures. For the nine months ended March 31, management said production at the Fremont fabrication facility was at or near full capacity and that targeted capital investments had been initiated to expand manufacturing capacity. The company also cautioned that the timing and scale of expansion would depend partly on customer requirements, supply-chain availability and financial resources. The new equity agreement directly addresses that last constraint by adding a sizable source of capital if it closes.

Financing follows a capital-heavy expansion phase

Enablence’s latest quarterly filings, available through its financial reporting page, show a business that has been growing revenue while still consuming cash. For the three months ended March 31, 2026, the company reported US$2.247 million in revenue, up 80% from the year-earlier quarter, and a positive gross margin of US$297,000, or 13.2% of revenue. Its net loss for the quarter was US$3.778 million, compared with US$4.384 million a year earlier.

For the first nine months of fiscal 2026, revenue was US$5.235 million, 36% higher than the comparable period, while the net loss widened to US$16.419 million from US$12.334 million. As of March 31, Enablence reported US$1.946 million in cash, a US$23.219 million working-capital deficit and US$59.256 million of borrowings. Those balance-sheet figures predate later financing activity, including a separate debt package completed in June, so they should not be read as the company’s September liquidity position.

In June, Enablence closed a separate debt financing with Pinnacle Island II LP that included a new non-revolving term loan, refinancing of earlier demand loans and amendments to other debt and interest obligations. The September agreement is structurally different because it would raise capital through newly issued common shares rather than another term loan.

That distinction comes with dilution for existing shareholders, but the agreed issue price is above the prior trading close rather than at a discount. Collingwood’s expected 13.3% post-closing stake and its pre-emptive rights would also make it a significant continuing participant in Enablence’s capital structure, assuming the financing is completed on the announced terms.

The next concrete milestone is the closing. Enablence expects that to occur by the end of September 2026, subject to satisfaction or waiver of the closing conditions and receipt of the required approvals. After closing, Collingwood is also expected to file an early-warning report with additional information on its ownership and the investment.