REG - Ethernity Networks - Update re. Subscription agreement and TVR

Ethernity NetworksAnnouncement

24/10/2023 14:00

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RNS Number : 1436R  Ethernity Networks Ltd  24 October 2023

24 October 2023

 

ETHERNITY NETWORKS LTD

("Ethernity" or the "Company")

 

Update re 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, provides an
update on the share subscription agreement with 5G Innovation Leaders Fund LLC
(the "Subscriber"), details of which were announced on 25 February 2022 (the
"Subscription Agreement").

On 20 October 2023, the Company announced that the Subscriber had issued a
settlement notice for $90,000 pursuant to the Subscription Agreement (the
"Settlement Notice") and that application had been made for 37,125,650 new
ordinary shares of NIS 0.001 each in the Company ("Ordinary Shares") to be
admitted to trading on AIM and allotted to the Subscriber in satisfaction of
the Settlement Notice. Having subsequently taken the advice of its UK legal
counsel, the Company no longer considers that the Settlement Notice was issued
validly, due to the Subscriber having notified the Company of an event of
default under the Subscription Agreement (as announced on 12 October 2023).

The Company has engaged with the Subscriber to seek to come to an agreed
position on the treatment of the Subscription Agreement during the Temporary
Suspension of Proceedings process (as announced on 16 October 2023) and
further updates will be provided in due course.

Total voting rights

The Company has withdrawn the application for admission of the 37,125,650
Ordinary Shares to trading on AIM. The Company's total issued share capital
therefore remains as 149,221,091 Ordinary Shares. The Company holds no
Ordinary Shares in Treasury. This figure of 149,221,091 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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