REG - Ethernity Networks - Structured investment deed to raise £800,000

Ethernity NetworksAnnouncement

17/05/2024 07:00

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RNS Number : 8170O  Ethernity Networks Ltd  17 May 2024

The information contained within this announcement is deemed by the Company to
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Abuse Regulations (EU) No. 596/2014 ("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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17 May 2024

 

ETHERNITY NETWORKS LTD.

 

("Ethernity" or the "Company")

 

Structured investment deed to raise £800,000

 

Ethernity Networks Ltd (AIM: ENET.L), a leading supplier of networking
processing semiconductor technology ported on field programmable gate arrays
for virtualised networking appliances is pleased to announce that it has
entered into a structured investment deed (the "Agreement") with New
Technology Capital Group, LLC ("New Tech") whereby New Tech will invest a
gross amount of £800,000 in the Company (the "Fundraise"). The Fundraise is
expected to close, and the Company expects to receive the proceeds, next week
("Closing").

In consideration of the gross Fundraise proceeds, New Tech has been granted a
contingent warrant exercisable over new ordinary shares of ILS 0.001 each
("Ordinary Shares") as described below (the "Warrant"), and at Closing, the
Company will issue 40,000,000 new Ordinary Shares (the "Subscription Shares")
to New Tech.

The Warrant is initially exercisable at a price of 1 pence per Ordinary Share
for a period of 45 days from Closing. The exercise price will be reset on the
45th day after Closing, following which it will be calculated as the average
of the lowest five daily VWAPs of an Ordinary Share during the twenty trading
days before the receipt of a Warrant exercise notice by the Company, less a
15% discount.

The Warrant has an eight-month exercise period and can be exercised in full or
in part with a maximum of five exercise notices being issued in total. The
amount available to be exercised under the Warrant is £800,000, less the
value of the 40,000,000 Subscription Shares, calculated by reference to the
relevant exercise price, such that New Tech will be entitled to exercise the
Warrant only for an amount exceeding the difference between the maximum amount
of £800,000 (or a lower amount outstanding at the time following prior
exercise of the Warrant) and the value of 40,000,000 Subscription Shares at
the relevant exercise price. The exercise price of the Warrant is prefunded by
way of the £800,000 gross Fundraise amount and, accordingly, no additional
payment will be made by New Tech to the Company in connection with the
exercise of the Warrant.

Should the exercise price be above 1p throughout the exercise period, then
40,000,000 is the maximum number of additional Ordinary Shares that would be
issued under the Agreement.

The Company will use the net proceeds of the Fundraise for general working
capital purposes.

Ethernity Networks CEO, David Levi, commented: "We are pleased to announce the
successful conclusion of this transaction. We have strong confidence in the
Company's future prospects, anticipating a rise in the Company's value as we
embark on strategic initiatives."

Total voting rights

Application will be made for the admission of 40,000,000 Subscription Shares
to trading on the AIM, and dealings are expected to become effective on or
about 24 May 2024 ("Admission"). On Admission, these new Shares will rank pari
passu with the Company's existing Shares. Following Admission, the Company
will have 417,642,243 Ordinary Shares in issue with each Ordinary Share
carrying the right to one vote. There are no Ordinary Shares currently held in
treasury. The total number of voting rights in the Company is therefore
417,642,243 and this figure may be used by shareholders as the denominator for
the calculations by which they will determine if they are required to notify
their interest in, or a change to their interest in, the Company under the
FCA's Disclosure Guidance and Transparency Rules.

For further information, please contact:

 

Ethernity Networks
Ltd
Tel: +972 3 748 9846

David Levi, Chief Executive Officer

Ayala Deutsch, Chief Financial 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)

 

CMC Markets UK plc (Joint
Broker)
Tel: +44 (0)20 3003 8632

Douglas Crippen

 

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) provides innovative, comprehensive networking
and security solutions on programmable hardware for accelerating telco/cloud
networks. Ethernity's semiconductor 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.

 

 

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