TIDMENET
RNS Number : 7712C
Ethernity Networks Ltd
25 February 2022
25 February 2022
ETHERNITY NETWORKS LTD.
("Ethernity" or the "Company")
Share Subscription Agreement
-- US$2 million share subscription by 5G Innovation Leaders Fund
-- Accelerating mass production, wireless infrastructure and
extending the Company's market presence
-- Investment on more favourable terms for the Company than the
previous agreement with 5G Innovation Leaders Fund
Ethernity Networks Ltd (AIM: ENET.L), a leading supplier of
networking processing technology ported on FPGA (field programmable
gate array) for virtualised networking appliances, announces that
it has entered into a share subscription deed (the "Agreement")
with 5G Innovation Leaders Fund LLC ("5G Fund"), a U.S.-based
institutional investor and a significant current shareholder in the
Company, in relation to the issue of new ordinary NIS 0.001 shares
("Shares"), to raise US$2,000,000.
Following the c.GBP4.6m placing in September 2021, the Company
is already sufficiently funded to complete the planned transition
towards mass production of the Company UEPs and ACE-NIC for 5G and
wireless infrastructure, and has now taken the opportunity to
secure additional funding on attractive terms (more favourable to
the Company than those of 5G Fund's previous investment in the
Company, which now includes a price per share protection mechanism
for the Company), to further extend the Company's market presence
in the programmable system platform market and to enable the
processing of larger orders by the Company.
ENET's CEO, David Levi, commented: "This further funding allows
us to accelerate completing the transition towards mass production
of the Company UEPs and ACE-NIC and provides an increased cash
buffer for the Company."
Details of the Agreement
5G Fund will make one investment of US$2,000,000 for new Shares
("Subscription Shares") valued at US$2,060,000 in the next five
days.
The investment under the Agreement will be made by way of a
prepayment for Subscription Shares, to be issued, at 5G Fund's
request, within 18 months of the date of the prepayment.
The number of Subscription Shares to be issued will be
determined by dividing the gross subscription amount by the
Settlement Price.
The Settlement Price will be equal to the sum of the Reference
Price and the Additional Price. The Reference Price will be the
average of three daily volume-weighted average prices ("VWAPs") of
Shares selected by 5G Fund during a fifteen-trading day period
immediately prior to the date of notice of their issue, rounded
down to the next one tenth of a penny. The Additional Price will be
equal to half of the excess of 85% of the average of the daily
VWAPs of the Shares during the three consecutive trading days
immediately prior to the date of notice of their issue over the
Reference Price. The pricing mechanism thus provides an additional
protection mechanism for the Company, to minimise excessive
discounts.
The investment is subject to customary conditions precedent. The
Agreement includes representations and warranties by the Company
that are customary for an equity fundraising of this nature. The
Company is required to adhere to customary negative covenants (but
for clarity, the Agreement does not restrict the Company from
raising additional capital in a conventional equity placing or
placings).
The Agreement contains events of default typical for a
transaction of this nature.
Admission
Upon receiving a settlement notice from the 5G Fund, application
will be made for any new Shares issued and allotted to 5G Fund to
be admitted to trading on AIM. Such new Shares will only be issued
to the extent that the Company has corporate authority to do
so.
For more information on Ethernity's products and solutions,
please see The Company's website at www.ethernitynet.com .
For further information, please contact:
Ethernity Networks Tel: +972 8 915 0392
David Levi, Chief Executive Officer
Mark Reichenberg, Chief Financial Officer
Arden Partners plc (NOMAD and Broker) Tel: +44 207 614 5900
Richard Johnson / George Morgan
Peterhouse Capital Limited (Joint Broker) Tel: +44 20 7562 0930
Lucy Williams / Duncan Vasey / Eran Zucker
About Ethernity Networks
Ethernity Networks (AIM: ENET.L) provides innovative,
comprehensive networking and security solutions on programmable
hardware for accelerating telco/cloud networks. Ethernity's FPGA
logic offers complete Carrier Ethernet Switch Router data plane
processing and control software with a rich set of networking
features, robust security, and a wide range of virtual function
accelerations to optimize telecommunications networks. Ethernity's
complete solutions quickly adapt to customers' changing needs,
improving time-to-market, and facilitating the deployment of 5G,
edge computing, and NFV.
MARKET ABUSE REGULATION
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014 (as implemented into
English Law). Upon the publication of this announcement via a
Regulatory Information Service, this inside information is now
considered to be in the public domain.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IOEBLGDDRSDDGDS
(END) Dow Jones Newswires
February 25, 2022 02:00 ET (07:00 GMT)
Ethernity Networks (LSE:ENET)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Ethernity Networks (LSE:ENET)
Gráfica de Acción Histórica
De May 2023 a May 2024
