Enablence Announces Amendment to Term Loan

Rhea-AI Summary

Enablence (TSXV: ENAFF) entered an amending agreement effective October 6, 2025, increasing the principal available under a secured term loan from C$20.0 million to C$25.0 million. The loan retains a 14% per annum interest rate and a maturity date of March 31, 2027. Proceeds are designated for working capital to support capacity expansion, equipment onboarding and product development. No securities will be issued in connection with the amendment. The amendment is a related‑party transaction because Pinnacle Island II LP collectively owns more than 10% of common shares, and the amendment remains subject to final TSX Venture Exchange approval.

Positive

• Additional C$5.0M principal capacity increases total loan to C$25.0M
• Proceeds earmarked for working capital to expand production capacity
• No equity issuance tied to the loan, avoiding shareholder dilution

Negative

• Loan bears a high interest rate of 14% per annum
• Loan is secured, increasing company leverage by C$5.0M
• Amendment is a related‑party transaction involving a >10% holder

Ottawa, Ontario--(Newsfile Corp. - October 7, 2025) - Enablence Technologies Inc. (TSXV: ENA) ("Enablence" or the "Company"), a leading provider of optical chips for datacom, telecom, automotive and artificial intelligence (AI) applications, is pleased to announce that effective October 6, 2025, it has entered into an amending agreement with Pinnacle Island II LP ("Pinnacle"), which amends the term loan (the "Original Loan") originally provided by Pinnacle to the Company on April 4, 2025 (the "Loan Amendment").

The Loan Amendment increases the total maximum principal under the Original Loan from C$20 million to C$25 million. Other than the change in principal identified above, there are no other changes to the terms of the Original Loan, being a secured loan with an interest rate of 14% per annum and maturing on March 31, 2027.

The proceeds of the Loan Amendment will be used for working capital purposes. A full copy of the Loan Amendment will be made available on SEDAR+ under the Company's issuer profile. No securities of the Company will be issued in connection with the Loan Amendment. The Loan Amendment remains subject to final approval of the TSX Venture Exchange (the "Exchange").

"This investment is expected to help us accelerate infrastructure and operational improvements to more quickly onboard new tools, equipment, and processes, which in turn will help us expand capacity and accelerate revenues from both our advanced product portfolio and legacy business," noted Todd Haugen, CEO of Enablence.

"Investment in new capacity to meet continuing strong demand for our legacy datacom solutions, while ensuring we continue to drive new product development efforts to meet growth opportunities in AI and LiDAR will further strengthen our growth plan. Ultimately, this latest capital investment, underscores our ongoing commitment to balancing innovation in advanced AI-enabled, advanced vision and optical technologies with reliable supply of proven, PLC-based, datacom and telecom products, driving both near-term revenue growth and long-term strategic execution."

MI 61-101

The Loan Amendment is a "related party transactions" within the definition of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") because Pinnacle is a "related party" of the Company because they, or their affiliates/related parties together have beneficial ownership of, or control or direction over, more than 10% of the common shares of the Company on an aggregate basis. The Company is relying on an exemption from the formal valuation requirement in Section 5.4 of MI 61-101 in Section 5.5(b) of MI 61-101, as no securities of the Company are listed on a specified market under MI 61-101. Additionally, the Company is exempt from the minority shareholder approval requirement in Section 5.6 of MI 61-101 in reliance on Section 5.7(1)(a) of MI 61-101 in respect of the Loan Amendment, as the Loan Amendment is not convertible directly or indirectly, into equity or voting securities of the Company.

About Enablence Technologies Inc.

Enablence is a publicly traded company listed on the Exchange (TSXV: ENA) that designs, markets and sells optical chips and sub systems, primarily in the form of planar lightwave circuits (PLC), on silicon-based chips for datacom, telecom, automotive and artificial intelligence (AI) applications. Enablence products serve a global customer base, primarily focused today on data center and other rapidly growing end markets. Enablence also works with customers that have emerging market uses for its technology, including medical devices, automotive LiDAR, and virtual and augmented reality headsets. In select strategic circumstances, the Company also uses its proprietary, non-captive fabrication plant in Fremont, California to manufacture chips designed by third party customers. For more information, visit: www.enablence.com.

Cautionary Note Regarding Forward-looking Information

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 ability of the Company to obtain final acceptance of the Exchange in respect of the Loan Amendment; the impact that the Loan Amendment will have on the prospects of the Company, including revenue growth; and the ability of the Company to maintain its business as a going concern. By their nature, forward-looking statements require us to make assumptions. Assumptions are based in part on the future capital expenditure levels and the ability to fulfill all conditions precedent to the closing of the Loan Amendment. 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, risks relating to the Company failing to obtain the final acceptance of the Loan Amendment and ancillary matters; and the ability of the Company to leverage proceeds from the Loan Amendment to improve the financial condition, revenue growth and prospects of the Company. 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.sedarplus.ca) 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.

For further information, contact:

Stan Besko, MBA
CFO Enablence Technologies Inc.
stan.besko@enablence.com

Todd Haugen
CEO Enablence Technologies Inc.
todd.haugen@enablence.com

Ali Mahdavi
Capital Markets & Investor Relations
am@spinnakercmi.com

Media and Analysts
Alison Parnell
Hill and Kincaid Marketing & PR
press@hillandkincaid.com

Media

Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/269590

FAQ

What change did Enablence (ENAFF) announce to its term loan on October 6, 2025?

Enablence increased the maximum principal under its secured term loan from C$20.0M to C$25.0M effective October 6, 2025.

What are the key loan terms for Enablence's amended loan (ENAFF)?

The loan remains secured, carries a 14% annual interest rate and matures on March 31, 2027.

How will Enablence (ENAFF) use the additional C$5.0M from the loan amendment?

The company said the proceeds will be used for working capital to onboard tools, expand capacity and support product development.

Will the Enablence loan amendment (ENAFF) issue new shares?

No securities will be issued in connection with the loan amendment, so there is no direct equity dilution.

Is the Enablence loan amendment (ENAFF) subject to regulatory or exchange approval?

Yes, the Loan Amendment remains subject to final approval by the TSX Venture Exchange.

Why is the loan amendment for Enablence (ENAFF) a related‑party transaction?

Pinnacle Island II LP is a related party because it and affiliates beneficially own or control over 10% of Enablence common shares.