REG - Ethernity Networks - Notice of GM and proposed grant of options

Ethernity NetworksAnnouncement

15/11/2024 10:15

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RNS Number : 4470M  Ethernity Networks Ltd  15 November 2024

15 November 2024

ETHERNITY NETWORKS LIMITED

("Ethernity" or the "Company")

 

Proposed option grants and notice of EGM

 

Ethernity Networks Limited (AIM: ENET.L) (OTCMKTS: ENETF), a leading supplier
of data processing semiconductor technology for networking appliances,
announces the grant of options to certain employees, the proposed grant of
options to certain directors of the Company (the "Option Grants") and provides
notice of an extraordinary general meeting of the Company (the "EGM"), which
is being convened, inter alia, for the purpose of seeking shareholder approval
for the Option Grants.

 

Option Grants and proposed Option Grants

 

Following the approval and recommendation of the Company's Remuneration
Committee, the Board of Directors approved the grant of Options to the
Company's Executive Directors and the Company's Chairman of the Board (in
compliance with the Company's compensation policy), and also to Company
employees and subcontractors in order to encourage their retention, implement
and deliver the business strategy and completing the product development, to
enable the Company's growth, success and a potential improvement in the share
price whilst conserving cash. In total, 63,600,000 options (the "Options")
over new ordinary shares of NIS 0.001 each ("Ordinary Shares") are to be
granted. 32,981,830 Options have been granted to certain employees and
subcontractors of the Company. A further 30,618,170 are proposed to be granted
to certain directors of the Company as follows:

 

 Director                    No. of Options proposed to be granted  Total options over Ordinary Shares held post grant  Percent of issued share capital
 David Levi (CEO)            21,789,223                             33,497,242                                          3.71%
 Shavit Baruch (VP R&D)      6,574,161                              11,070,118                                          1.23%
 Yosi Albagli (Chairman)     2,254,786                              2,749,455                                           0.30%
 TOTAL                       30,618,170                             47,316,815                                          5.24%

 

Per applicable UK law and the AIM Rules for Companies, as long as the Options
are allocated in accordance with the Company's compensation policy, there is
no need for obtaining shareholder approval. However, under Israeli law, the
grants of Options to the Company's Executive Directors and to the Company's
Chairman are subject to approval of the shareholders at a general meeting.

The Options have an exercise price of £0.00247. The Options will vest over
three years in 12 equal portions, with 1/12 of the Options vesting at the end
of each quarter following the date of grant.

 

Notice of EGM

 

The Company will shortly post to shareholders a notice of EGM, to be held at
3rd Floor Beit Golan, 1 Golan St. Corner HaNegev, Airport City 7019900, Israel
at 11.00 a.m. Israel time (9.00 a.m. UK time) on 23 December 2024. The purpose
of the EGM is to seek shareholder approval for increasing the authorised share
capital of the Company, disapplication of pre-emption rights on equity issues
for cash and approval of the Option Grants to directors. A copy of the EGM
notice will be made available on the Company's website, www.ethernitynet.com
(http://www.ethernitynet.com) .

 

 

 

For further information, please contact:

 

 Ethernity Networks Ltd                                         Tel: +972 3 748 9846
 David Levi, Chief Executive Officer

 Tomer Assis, Chief Financial 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)

 CMC Markets UK plc (Joint Broker)                              Tel: +44 (0)20 3003 8632
 Douglas Crippen

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

 

 

 

About Ethernity Networks

Ethernity Networks (AIM: ENET.L; OTCMKTS: ENETF) provides innovative,
comprehensive networking and security solutions on programmable hardware,
enhancing telco/cloud network infrastructure capacity. Ethernity's
semiconductor logic offers data processing functionality for various
networking applications, alongside patented wireless access technology and
fiber access media controllers, all equipped with control software boasting a
rich set of networking features. Ethernity's solutions swiftly adapt to
customers' evolving needs, accelerating time-to-market and facilitating the
deployment of 5G over wireless and fiber infrastructure.

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