REG - Ethernity Networks - Extension to and update on TSP process

Ethernity NetworksAnnouncement

20/12/2023 14:15

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RNS Number : 5074X  Ethernity Networks Ltd  20 December 2023

 

20 December 2023

 

ETHERNITY NETWORKS LTD

("Ethernity" or the "Company")

 

Extension to and update on TSP process

 

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 an
update on the Company's Temporary Suspension of Proceedings ("TSP") process.

 

On 30 October 2023, the Company announced that it had been granted an initial
extension of the TSP process until 31 December 2023. The Court in Lod (the
"Court") has today granted a further extension to the TSP process, until 30
January 2024.

 

The two main objectives of the TSP process are:

 

·    to revive and recover the Company's ongoing operations as a going
concern; and

·    to enable Ethernity to agree a settlement with its creditors for the
repayment of the Company's outstanding debts.

 

The Company has been focused on achieving those two objectives during the TSP
process and, as announced on 19 December 2023, together with the cash
collection during Q4 2023, the Company has secured sufficient funds which will
enable it to continue with its ongoing operations, service existing client
contracts, capitalise on new opportunities and support the Company's growth.

 

In respect of reaching an agreement with its creditors, the Company has
submitted a proposal for settlement of the debts (the "Settlement Proposal")
to the TSP settlement manager. Subject to the approval of the Settlement
Proposal by the settlement manager and the Court, a meeting of creditors of
the Company will be convened to seek their approval of the Settlement
Proposal.

 

The extension to the TSP process is expected to provide the Company with
sufficient time to convene the creditors meeting within the TSP period.
Subject to the approval of the Settlement Proposal at the creditors meeting,
the Board anticipates that the Company will be able to successfully exit the
TSP process prior to the end of January 2024 with a strong cash position which
will enable the continued operations of the Company. A further announcement
will be provided once the creditors meeting has been convened.

 

For further information, please contact:

 

 Ethernity Networks Ltd                                         Tel: +972 3 748 9846
 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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