Ethernity Networks Ltd Variation of warrant instruments (5619A)
25 Mayo 2023 - 1:00AM
UK Regulatory
TIDMENET
RNS Number : 5619A
Ethernity Networks Ltd
25 May 2023
25 May 2023
ETHERNITY NETWORKS LTD.
("Ethernity" or the "Company")
Variation of warrant instruments
Ethernity Networks (AIM: ENET.L; OTCQB: ENETF), a leading
supplier of data processing semiconductor technology for networking
appliances, announces a variation of the exercise price of the
warrant instruments (the "Warrants") that were granted in
connection with the fundraise undertaken by the Company in January
2023 (the "January Fundraise").
The net proceeds of the January Fundraise and the Company's
fundraise in May 2023 (the "May Fundraise"), have, inter alia,
provided the Company with additional working capital to support the
delivery of customer contracts. The Directors believe that the
proceeds that would be receivable by the Company through the
exercise of any of the Warrants would further strengthen the
Company's balance sheet and provide additional confidence to
prospective customers as to the Company's financial position. It
would also provide additional working capital to support the
fulfilment of anticipated new customer orders.
The initial 15p exercise price of the Warrants represents a
premium of over 400% to the closing mid-market price of an Ordinary
Share on 24 May 2023. The Directors consider therefore that it is
appropriate to amend the exercise price of the Warrants to a level
that is more attractive to Warrant holders and which would still
provide meaningful funding to the Company should the Warrants be
exercised in full.
The Company has on 24 May 2023, varied the exercise price of the
23,571,430 Warrants from 15p to 6p per new ordinary share in the
Company ("Ordinary Share"), representing a 107% premium to the
closing mid-market price of an Ordinary Share on 24 May 2023 and a
100% premium to the issue price of the Company's recent placing,
announced on 11 May 2023. In addition, the Warrants contain an
"accelerator clause" whereby the Company is entitled to require the
warrant holder to exercise the subscription rights to which to
which the holder is entitled in the event that the mid-market price
of an Ordinary Shares should close above a certain price for any
period of five consecutive days prior to expiry on 8 February 2025.
This "accelerator clause" has been varied from 20p to 7.5p,
applicable on the same basis as outlined above and in the
Warrants.
All of the terms of the Warrants remain unchanged and as
announced on 17 January 2023. The expiry date of the Warrants
remains as 8 February 2025.
Related party transaction
David Levi and Shavit Baruch (the "Directors") hold 3,028,571
and 668,771 Warrants respectively, by virtue of their participation
in the January Fundraise. The variation of the exercise price of
the Warrants held by the Directors constitutes a related party
transaction under the AIM Rules for Companies. The independent
directors of Ethernity (excluding David Levi and Shavit Baruch)
consider, having consulted with the Company's nominated adviser,
Allenby Capital Limited, that the terms of the transaction are fair
and reasonable insofar as the Company's shareholders are
concerned.
The FCA notification, made in accordance with the requirements
of the UK Market Abuse Regulation is appended further below.
For further information, please contact:
Ethernity Networks Ltd Tel: +972 8 915 0392
David Levi, Chief Executive Officer
Mark Reichenberg, Chief Financial Officer
Allenby Capital Limited (Nominated Adviser Tel: +44 (0)20 3328
and Joint Broker) 5656
James Reeve / Piers Shimwell (Corporate
Finance)
Amrit Nahal (Sales and Corporate Broking)
Peterhouse Capital Limited (Joint Broker) Tel: +44 (0)20 7562
0930
Lucy Williams / Duncan Vasey / Eran Zucker
About Ethernity ( www.ethernitynet.com )
Ethernity Networks (AIM: ENET.L OTCQB: ENETF) provides
innovative, comprehensive networking and security solutions on
programmable hardware that increase telco/cloud network
infrastructure capacity. Ethernity's semiconductor logic offers
data processing functionality for different networking
applications, innovative patented wireless access technology, and
fibre access media controllers, all equipped with control software
with a rich set of networking features. Ethernity's solutions
quickly adapt to customers' changing needs, improving
time-to-market, and facilitating the deployment of 5G over wireless
and fibre infrastructure.
Notification and public disclosure of transactions by persons
discharging managerial responsibilities and persons closely
associated with them.
1 Details of the person discharging managerial responsibilities
/ person closely associated
a) Name David Levi
----------------------------------- ----------------------------------------------
2 Reason for the notification
-----------------------------------------------------------------------------------
a) Position/status CEO
----------------------------------- ----------------------------------------------
b) Initial notification Initial notification
/Amendment
----------------------------------- ----------------------------------------------
3 Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
-----------------------------------------------------------------------------------
a) Name Ethernity Networks Ltd.
----------------------------------- ----------------------------------------------
b) LEI 213800LZJO33QBNXU496
----------------------------------- ----------------------------------------------
4 Details of the transaction(s): section to be repeated for
(i) each type of instrument;
(ii) each type of transaction; (iii) each date; and (iv)
each place where transactions have been conducted
-----------------------------------------------------------------------------------
a) Description of the Warrants over ordinary shares of NIS
financial instrument, 0.001 nominal value each
type of instrument
Identification code ISIN: IL0011410359
b) Nature of the transaction Variation of exercise price of existing
warrants over ordinary shares
c) Price(s) and volume(s)
------------------------ -----------------
Price(s) Volume(s)
------------------------ -----------------
6p exercise
price 3,028,571
----------------------------------------------------------------- -----------------
d) Aggregated information N/A
e) Date of the transaction 24 May 2023
f) Place of the transaction Outside a trading venue
----------------------------------- ----------------------------------------------
1 Details of the person discharging managerial responsibilities
/ person closely associated
a) Name Shavit Baruch
----------------------------------- ----------------------------------------------
2 Reason for the notification
-----------------------------------------------------------------------------------
a) Position/status Director
----------------------------------- ----------------------------------------------
b) Initial notification Initial notification
/Amendment
----------------------------------- ----------------------------------------------
3 Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
-----------------------------------------------------------------------------------
a) Name Ethernity Networks Ltd.
----------------------------------- ----------------------------------------------
b) LEI 213800LZJO33QBNXU496
----------------------------------- ----------------------------------------------
4 Details of the transaction(s): section to be repeated for
(i) each type of instrument;
(ii) each type of transaction; (iii) each date; and (iv)
each place where transactions have been conducted
-----------------------------------------------------------------------------------
a) Description of the Warrants over ordinary shares of NIS
financial instrument, 0.001 nominal value each
type of instrument
Identification code ISIN: IL0011410359
b) Nature of the transaction Variation of exercise price of existing
warrants over ordinary shares
c) Price(s) and volume(s)
------------------------ -----------------
Price(s) Volume(s)
------------------------ -----------------
6p exercise
price 668,771
----------------------------------------------------------------- -----------------
d) Aggregated information N/A
e) Date of the transaction 24 May 2023
f) Place of the transaction Outside a trading venue
----------------------------------- ----------------------------------------------
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