Enablence Announces Amendment to Term Loan

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.