REG - Ethernity Networks - Result and Notice of General Meeting

Ethernity NetworksAnnouncement

08/04/2025 10:00

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RNS Number : 1079E  Ethernity Networks Ltd  08 April 2025

8 April 2025

ETHERNITY NETWORKS LIMITED

("Ethernity" or the "Company")

 

Result of EGM

and

Notice of EGM

 

Ethernity Networks Limited (AIM: ENET.L) (OTCMKTS: ENETF), a leading supplier
of data processing semiconductor technology for networking appliances,
announces that at the Company's Extraordinary General Meeting held earlier
today, resolution 1 was passed and resolution 2 was not passed.

 

Both resolutions received votes in favour representing 67% of the total votes
cast. Resolution 1 was an ordinary resolution to increase the Company's
authorized share capital to NIS 6,400,000 and was therefore passed. Resolution
2 was a special resolution to allow the Directors to disapply pre-emption
rights on an equity issue for cash and this resolution did not pass as it did
not achieve the required 75% majority to be approved.

 

As per previous announcements, the Directors sought approval to disapply
pre-emption rights on equity issues for cash, inter alia, to enable the
Company to raise further funding to support the settlement of its payment
obligations pursuant to the creditor settlement plan and allow the Company to
progress its potential ASIC business. Under the terms of the creditor
settlement plan, the Company has a 'grace' period to settle its payment
obligations by the end of April 2025. If the Company is unable to settle its
obligations by the end of April, the settlement manager may approach the court
to seek an extension to the repayment date, however, there is no guarantee
that they would be able to do this or whether the Court would approve such
extension. The Board considers that it is essential that the Company has the
share authorities in place to be able to raise further funds and, should these
not be granted, the future prospects of the Company are uncertain. Should the
Company fail to secure additional funding ahead of the end of April, there is
a risk that the Company will no longer be able to continue to trade as a going
concern. In these circumstances, the Board would have no option but to
commence a wind down of the Company's operations.

 

As a result, the Company is shortly posting a notice to convene a further
Extraordinary General Meeting ("EGM") at its offices on the 3rd Floor, Beit
Golan, 1 Golan Street (corner of HaNegev), Airport City 7019900, Israel, at
11:00 a.m. Israel time (9:00 a.m. UK time) on 28 April 2025. The purpose of
this EGM is to seek shareholder approval for the disapplication of pre-emption
rights on equity issues for cash.

 

A copy of the EGM notice will be made available on the Company's website,
www.ethernitynet.com (http://www.ethernitynet.com) .

 

Shareholders should note that the number of shares that could be issued under
the proposed additional share authorities may result in significant dilution
of the existing issued share capital. However, the Board is actively engaged
in discussions regarding various fundraising opportunities, and the approval
of the disapplication of pre-emption rights is the critical component in
enabling the Company to continue its operation.

 

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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