REG - Ethernity Networks - Director's Loan and Related Party Transaction

Ethernity NetworksAnnouncement

26/10/2023 15:15

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RNS Number : 4484R  Ethernity Networks Ltd  26 October 2023

26 October 2023

 

ETHERNITY NETWORKS LTD

("Ethernity" or the "Company")

 

Director's Loan and Related Party Transaction

 

Further to the Company's announcement on 26 October 2023, Ethernity Networks
Ltd (AIM: ENET.L; OTCMKTS: ENETF), a leading supplier of networking processing
semiconductor technology ported on field programmable gate arrays ("FPGAs")
for virtualised networking appliances, announces that David Levi, CEO, has
agreed to provide the Company with a loan for up to 1,000,000 NIS
(approximately £203,000) which will carry zero interest (the "Loan"). The
amount to be provided will be determined by the immediate cash requirements of
the Company.

The term of the Loan is until the end of the Temporary Suspension of
Proceedings ("TSP") process, details of which were announced on 12 October
2023 and 16 October 20232. Further announcements on the timing of this will be
made in due course.

The Loan provides the Company with the interim funding to allow the Company to
continue operating as a going concern whilst the Company aims to implement its
temporary operating plan during the TSP process. The Loan has been approved by
the Court and, pursuant to the terms of the TSP, entitles David Levi to be
repaid the loan amount first as a priority creditor in any event.

The proceeds of the Loan will be utilised to cover the essential day to day
running costs of the business.

Related party transaction

David Levi is a director of the Company and, as such, is considered a related
party of the Company for the purposes of the AIM Rules for Companies. The Loan
constitutes a related party transaction pursuant to Rule 13 of the AIM Rules
for Companies. Having consulted with the Company's nominated adviser, Allenby
Capital Limited, the Company's directors, with the exception of David Levi,
consider that the terms of the Loan are fair and reasonable insofar as
Ethernity's shareholders are concerned.

 

For further information, please contact:

 

 Ethernity Networks Ltd                                         Tel: +972 8 915 0392
 David Levi, Chief Executive Officer

 Allenby Capital Limited (Nominated Adviser and Joint Broker)   Tel: +44 (0)20 3328 5656
 James Reeve / Piers Shimwell (Corporate Finance)

 Amrit Nahal / Stefano Aquilino (Sales and Corporate Broking)

 Peterhouse Capital Limited (Joint Broker)                      Tel: +44 (0)20 7562 0930
 Lucy Williams / Duncan Vasey / Eran Zucker

 

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