REG - Ethernity Networks - Issue of Equity to Directors
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RNS Number : 5558X Ethernity Networks Ltd 23 March 2026
23 March 2026
Ethernity Networks Limited
("Ethernity" or the "Company")
Issue of Equity to Directors
Ethernity Networks Limited (AIM: ENET.L; OTCMKTS: ENETF), a leading supplier
of data processing and PON semiconductor technology for networking appliances,
announces the issue of new ordinary shares of no par value in the Company
("Ordinary Shares") to certain directors of the Company ("Directors"), further
to the announcements made on 2 February 2026 and 10 March 2026.
Conversion of accrued and unpaid salaries and fees to Directors into Ordinary
Shares
On 2 February 2026, the Company announced that alongside the placing to raise
£367,500 (the "Placing"), it was proposed that certain Directors would up to
£70,000 of convert accrued and unpaid salaries and Director fees into new
Ordinary Shares at the issue price of the Placing, being £0.00004 (0.004p)
(the "Director Fee Conversions"). The Director Fee Conversions were
conditional on the approval of shareholders at the Extraordinary General
Meeting that was held on 18 March 2026 ("EGM"). Following the passing of the
resolutions at the EGM, the Company has on 22 March 2026 issued 1,350,000,000
new Ordinary Shares (the "Director Fee Conversion Shares") to certain
Directors of the Company, in conversion of £54,000 of Director fees. The
details of the issue of Director Fee Conversion Shares to each Director and
their resultant holding of Ordinary Shares is set out below.
Director Amount of unpaid net salary/fees to convert Number of Director Fee Conversion Shares Resultant holding of Ordinary Shares Percentage of enlarged share capital
David Levi NIS 130,000/ £30,000 750,000,000 973,522,797 3.68%
Shavit Baruch NIS 50,000/ £12,000 300,000,000 305,760,438 1.16%
Joseph (Yosi) Albagli NIS 50,000/ £12,000 300,000,000 456,580,830* 1.72%*
*Includes the new Ordinary Shares issued to Mr Albagli as further detailed
below.
The remaining conversion of up to £16,000 of unpaid net salary or fees, which
would result in the issue of up to 400,000,000 new Ordinary Shares, will be
determined and approved by the Board in a later stage, but not later than
three months from the date of the EGM.
Related party transaction
The issue of the Director Fee Conversion Shares to certain Directors
constitutes a related party transaction under the AIM Rules for Companies. The
independent Directors, being Richard Bennett, Julie Kunstler and Aviva
Banczewski, consider that the issue of the Director Fee Conversion Shares is
fair and reasonable insofar as the Company's shareholders are concerned.
Issue of equity to Chairman
Further to the announcement on 10 March 2026 and following the approval of the
resolutions at the EGM, the Company has also today issued the remaining
88,357,437 Ordinary Shares to Mr Albagli in satisfaction of the balance of the
Ordinary Shares due under his existing contract for the two years ending 28
February 2026. His resultant holding of Ordinary Shares is detailed in the
table above.
Total voting rights
Application will be made to the London Stock Exchange for 1,438,357,437 new
Ordinary Shares to be admitted to trading on AIM ("Admission") and Admission
is expected to occur on or around 26 March 2026. The new Ordinary Shares will,
upon issue, rank pari passu with the existing Ordinary Shares in the Company.
Following Admission, the Company's enlarged issued share capital will be
26,470,185,930 Ordinary Shares. The Company holds no Ordinary Shares in
Treasury. This figure of 26,470,185,930 Ordinary Shares may be used by
shareholders in the Company as the denominator for the calculations by which
they will determine if they are required to notify their interest in, or a
change in their interest in, the share capital of the Company under the FCA's
Disclosure Guidance and Transparency Rules.
For further information, please contact:
Ethernity Networks Ltd Tel: +972 3 748 9846
David Levi, CEO
Tomer Assis, CFO
Allenby Capital Limited (Nominated Adviser and Joint Broker) Tel: +44 (0)20 3328 5656
James Reeve / Piers Shimwell (Corporate Finance)
Amrit Nahal (Sales & Broking)
ALBR Capital Limited (Joint Broker) Tel: +44 (0)20 7562 0930
Lucy Williams / Duncan Vasey
CMC Markets UK plc (Joint Broker) Tel: +44 (0)20 3003 8632
Douglas Crippen
About Ethernity Networks
Ethernity Networks (AIM: ENET.L; OTCMKTS: ENETF) provides innovative
networking and security solutions on programmable hardware, enhancing
telco/cloud infrastructure capacity. Its semiconductor logic enables advanced
data processing for networking applications, alongside patented wireless
access and fiber media controllers. Ethernity's solutions accelerate
time-to-market and support the deployment of 5G over wireless and fiber
infrastructure.
Notification and public disclosure of transactions by persons discharging
managerial responsibilities and persons closely associated with them
1 Details of the person discharging managerial responsibilities / person closely
associated
a) Name Joseph Albagli
2 Reason for the notification
a) Position/status Director
b) Initial notification /Amendment Initial notification
3 Details of the issuer, emission allowance market participant, auction
platform, auctioneer
or auction monitor
a) Name Ethernity Networks Ltd.
b) LEI 213800LZJO33QBNXU496
4 Details of the transaction(s): section to be repeated for (i) each type of
instrument;
(ii) each type of transaction; (iii) each date; and (iv) each place where
transactions have been conducted
a) Description of the financial instrument, type of ordinary shares of no par value
instrument Identification code
ISIN: IL0011410359
b) Nature of the transaction Shares element of annual remuneration
c) Price(s) and volume(s)
Price(s) Volume(s)
Allotment of shares Average 0.01p 88,357,437
d) Aggregated information N/a - single transaction
e) Date of the transaction 22 March 2026, to be completed on 26 March 2026
f) Place of the transaction Outside of a trading venue
1 Details of the person discharging managerial responsibilities / person closely
associated
a) Name Joseph Albagli
2 Reason for the notification
a) Position/status Director
b) Initial notification /Amendment Initial notification
3 Details of the issuer, emission allowance market participant, auction
platform, auctioneer
or auction monitor
a) Name Ethernity Networks Ltd.
b) LEI 213800LZJO33QBNXU496
4 Details of the transaction(s): section to be repeated for (i) each type of
instrument;
(ii) each type of transaction; (iii) each date; and (iv) each place where
transactions have been conducted
a) Description of the financial instrument, type of ordinary shares of no par value
instrument Identification code
ISIN: IL0011410359
b) Nature of the transaction Shares element of annual remuneration
c) Price(s) and volume(s)
Price(s) Volume(s)
Allotment of shares 0.004p 300,000,000
d) Aggregated information N/a - single transaction
e) Date of the transaction 22 March 2026, to be completed on 26 March 2026
f) Place of the transaction Outside of a trading venue
1 Details of the person discharging managerial responsibilities / person closely
associated
a) Name David Levi
2 Reason for the notification
a) Position/status Director
b) Initial notification /Amendment Initial notification
3 Details of the issuer, emission allowance market participant, auction
platform, auctioneer
or auction monitor
a) Name Ethernity Networks Ltd.
b) LEI 213800LZJO33QBNXU496
4 Details of the transaction(s): section to be repeated for (i) each type of
instrument;
(ii) each type of transaction; (iii) each date; and (iv) each place where
transactions have been conducted
a) Description of the financial instrument, type of ordinary shares of no par value
instrument Identification code
ISIN: IL0011410359
b) Nature of the transaction Shares element of annual remuneration
c) Price(s) and volume(s)
Price(s) Volume(s)
Allotment of shares 0.004p 750,000,000
d) Aggregated information N/a - single transaction
e) Date of the transaction 22 March 2026, to be completed on 26 March 2026
f) Place of the transaction Outside of a trading venue
1 Details of the person discharging managerial responsibilities / person closely
associated
a) Name Shavit Baruch
2 Reason for the notification
a) Position/status Director
b) Initial notification /Amendment Initial notification
3 Details of the issuer, emission allowance market participant, auction
platform, auctioneer
or auction monitor
a) Name Ethernity Networks Ltd.
b) LEI 213800LZJO33QBNXU496
4 Details of the transaction(s): section to be repeated for (i) each type of
instrument;
(ii) each type of transaction; (iii) each date; and (iv) each place where
transactions have been conducted
a) Description of the financial instrument, type of ordinary shares of no par value
instrument Identification code
ISIN: IL0011410359
b) Nature of the transaction Shares element of annual remuneration
c) Price(s) and volume(s)
Price(s) Volume(s)
Allotment of shares 0.004p 300,000,000
d) Aggregated information N/a - single transaction
e) Date of the transaction 22 March 2026, to be completed on 26 March 2026
f) Place of the transaction Outside of a trading venue
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