REG - Ethernity Networks - Subscription agreement part settlement and TVR

Ethernity NetworksAnnouncement

20/10/2023 07:00

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RNS Number : 7366Q  Ethernity Networks Ltd  20 October 2023

20 October 2023

 

ETHERNITY NETWORKS LTD

("Ethernity" or the "Company")

 

Subscription agreement part settlement and TVR

 

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, announces that it
has received a settlement notice for $90,000 from 5G Innovation Leaders Fund
LLC (the "Subscriber") pursuant to the share subscription agreement, details
of which were announced on 25 February 2022 (the "Subscription Agreement").
The Subscriber is entitled to issue settlement notices under the Subscription
Agreement despite notifying the Company of an event of default under the
agreement and the ongoing Temporary Suspension of Proceedings, details of
which were announced on 16 October 2023.

Accordingly, the Company has issued and allotted 37,125,650 new ordinary
shares of NIS 0.001 each in the Company ("Ordinary Shares") to the Subscriber
at a deemed issue price of 0.2p per Ordinary Share (the "Settlement Shares").
The issue price has been calculated pursuant to the price mechanism and
additional price protection mechanism set out in the announcement of the
Subscription Agreement on 25 February 2022.

 

Application will be made to the London Stock Exchange for the Settlement
Shares to be admitted to trading on AIM ("Admission") and Admission is
expected to occur on or around 25 October 2023. The Settlement Shares will,
upon Admission, rank pari passu with the existing Ordinary Shares in the
Company.

 

Following the receipt of this settlement notice and the issue of the
Settlement Shares, the remaining outstanding balance under the Subscription
Agreement is $1,246,000 (approximately £1.0 million).

 

Total voting rights

 

Following Admission, the Company's enlarged issued share capital will be
186,346,741 Ordinary Shares. The Company holds no Ordinary Shares in Treasury.
This figure of 186,346,741 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 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

MARKET ABUSE REGULATION

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse (amendment)
(EU Exit) Regulations 2019/310 ("MAR"). With the publication of this
announcement via a Regulatory Information Service, this inside information is
now considered to be in the public domain.

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