REG - Ethernity Networks - Statement re Share Price Movement

Ethernity NetworksAnnouncement

26/10/2023 11:15

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RNS Number : 4254R  Ethernity Networks Ltd  26 October 2023

26 October 2023

 

ETHERNITY NETWORKS LTD

("Ethernity" or the "Company")

 

Statement regarding share price

 

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, notes the recent
rise in the Company's share price.

As announced on 24 October 2023, the Company is in discussions with 5G
Innovation Leaders Fund LLC (the "Subscriber") to seek to come to an agreed
position on the treatment of the subscription agreement, details of which were
announced on 25 February 2022 (the "Subscription Agreement") during the
Temporary Suspension of Proceedings ("TSP") process (as announced on 16
October 2023) and further updates will be provided in due course. These
ongoing discussions include the validity of the settlement notice referred to
in the Company's announcements on 20 October 2023 and 24 October 2023
("Settlement Notice") and the Company remains of the view that the Settlement
Notice was not issued validly. There can be no guarantees as to the outcome of
the discussions with the Subscriber.

As noted in the Company's announcement on 12 October 2023, as part of the
temporary operating plan during the TSP, the Company will be putting in place
interim funding up to a total of 1,000,000 NIS which will allow the Company to
continue operating as a going concern. David Levi, CEO, has agreed to provide
this interim funding to the Company and a further update on this will be
announced shortly, once the financing has been put in place. Any such loan to
the Company would be approved by the Court and entitle the lender to be repaid
as a priority creditor in any insolvency process, in accordance with the
requirements of the TSP.

In addition, the settlement manager has filed a report requesting to extend
the TSP period until the end of December 2023, and an update will be announced
should the extension be approved.

For further information, please contact:

 

 Ethernity Networks Ltd                                         Tel: +972 8 915 0392
 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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