REG - Ethernity Networks - Placing to raise £230,000

Ethernity NetworksAnnouncement

19/02/2026 10:45

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RNS Number : 6973T  Ethernity Networks Ltd  19 February 2026

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Abuse Regulation (EU) No. 596/2014 ("MAR"). With the publication of this
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19 February 2026

Ethernity Networks Limited

("Ethernity" or the "Company")

 

 Placing

 

Ethernity Networks Limited (AIM: ENET.L; OTCMKTS: ENETF), a leading supplier
of data processing and PON semiconductor technology for networking appliances,
is pleased to announce a proposed placing of 5,750,000,000 new ordinary shares
of no par value ("Placing Shares") at an issue price of £0.00004 (0.004p) per
share (the "Placing Price") to raise £230,000 (approximately US$315,000)
before expenses (the "Placing").

 

This Placing is in addition to the £367,500 fundraising announced on 2
February 2026 (the "2 February Placing"), bringing the total gross proceeds
from both recent placings to £597,500 before expenses.

 

The Placing has been conducted on the same terms as the 2 February Placing. As
a result, it is intended that participants in the Placing will receive one
warrant for every Placing Share subscribed for, exercisable at the Placing
Price for a period of 12 months from the date of grant (the "Warrants"), with
an acceleration clause that would be triggered should the Company's share
price reach 0.006 pence.

 

The grant of the Warrants is conditional on the passing of resolutions at the
Company's upcoming extraordinary general meeting ("EGM"), being held on 18
March 2026, to seek approval for an increase in the Company's authorities to
issue and allot new ordinary shares of no par value ("Ordinary Shares").

 

The Placing is being undertaken by ALBR Capital Limited ("AlbR").

 

Use of Proceeds

The net proceeds will, together with the proceeds of the 2 February Placing,
be utilised for general working capital purposes and to accelerate development
of the Company's next-generation 400Gbps Traffic Manager Engine, with
additional resources supplementing those already allocated to the expanded
engagement in place with the Company's Tier-1 U.S. defense customer and other
current customer programmes.

 

Details of the Placing

The Company has conditionally raised £230,000 (before expenses) through the
issue of 5,750,000,000 Placing Shares at the Placing Price of 0.004 pence per
share, utilising the Company's existing authorities to issue new Ordinary
Shares on a non-pre-emptive basis.

 

The Placing Price represents a 21.5% discount to the closing mid-market price
of an Ordinary Share on 18 February 2026.

 

Warrants

Conditional on the passing of the relevant resolutions at the EGM,
participants in this Placing will be issued on Warrant for each Placing Share
subscribed for, resulting in the issue of 5,750,000,000 Warrants. These are in
addition to the 9,187,500,000 warrants over Ordinary Shares issued in
connection with the 2 February Placing. The Warrants will be exercisable at
0.004p for a period of 12 months from the date of grant. They will not be
transferable and will not be traded on an exchange.

 

The Warrants will contain an acceleration clause enabling the Company to serve
notice ("Notice") if the closing mid-market share price trades at 0.006p or
more for five consecutive trading days. In the event the Company serves
Notice, any Warrants not exercised within seven calendar days of such Notice
will lapse.

 

If exercised in full, the Warrants would provide an additional £230,000 of
gross proceeds to the Company and, should the proposed warrants to be issued
in connection with the 2 February Placing also be exercised in full, together
the exercise of warrants issued for the two placings would generate a total of
£597,500 (approximately US$815,000) of gross proceeds for the Company.

 

Admission to Trading

Application will be made for the 5,750,000,000 Placing Shares to be admitted
to trading on AIM ("Admission"). Admission is expected to occur at 8.00 a.m.
on or around 25 February 2026.

 

Total Voting Rights

Following Admission, the Company's enlarged issued share capital will comprise
24,969,328,493 Ordinary Shares. The Company holds no shares in treasury. This
figure may be used by shareholders for the purposes of the FCA's Disclosure
Guidance and Transparency Rules.

 

David Levi, Chief Executive Officer, commented: "Following the successful
fundraising announced on 2 February 2026, the directors have agreed to accept
additional funding to further support the Company's recovery and growth plans.
This incremental Placing strengthens our ability to accelerate development of
our next-generation 400Gbps Traffic Manager, which is expected to further
support the Company's growth."

 

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.

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