12 July 2024
ETHERNITY NETWORKS
LTD
("Ethernity" or the "Company")
Warrant exercise under
structured investment deed
Ethernity Networks (AIM: ENET.L;
OTCMKTS: ENETF), a leading supplier of data processing
semiconductor technology for networking appliances, announces that
it has received a warrant exercise notice for £395,000 from New
Technology Capital Group, LLC ("New Tech") pursuant to the
Structured Investment Deed ("Investment Deed"), details of which
were announced on 17 May 2024 (the "Announcement).
Accordingly, the Company has issued
and allotted 98,750,000 new ordinary shares of NIS 0.001 each in
the Company ("Ordinary Shares") to New Tech at an issue price of
0.4p per Ordinary Share (the "New Ordinary Shares"). The issue
price was determined by reference to the pricing mechanism in the
Investment Deed, as set out in the Announcement.
Application will be made to the
London Stock Exchange for the New Ordinary Shares to be admitted to
trading on AIM ("Admission") and Admission is expected to occur on
or around 17 July 2024. The New Ordinary Shares will, upon
Admission, rank pari
passu with the existing Ordinary Shares in the
Company.
Following the receipt of this
warrant exercise notice and the issue of the New Ordinary Shares,
the remaining balance in relation to which New Tech may exercise
its Warrant under the Investment Deed is £405,000, less the value
of the 40,000,000 Subscription Shares issued to New Tech at the
time of entering into the Investment Deed (as set out in the
Announcement) at the relevant exercise price. Based on the deemed
exercise price for this warrant issue of 0.4p, the remaining
outstanding balance under the Investment Deed is £245,000 (however,
this amount may vary depending on the relevant exercise price at
the time of exercise).
Holdings in Company
The Company has been informed by New
Tech that, following Admission, New Tech will hold 127,378,000
Ordinary Shares, representing 24.67% of the Company's enlarged
share capital.
Total voting rights
Following Admission, the Company's
enlarged issued share capital will be 516,392,243 Ordinary Shares.
The Company holds no Ordinary Shares in Treasury. This figure of
516,392,243 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:
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Ethernity Networks Ltd
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Tel: +972 3 748 9846
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David Levi, Chief Executive
Officer
Ayala Deutsch, Chief Financial
Officer
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Allenby Capital Limited (Nominated Adviser and Joint Broker)
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Tel: +44 (0)20 3328 5656
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James Reeve / Piers Shimwell
(Corporate Finance)
Amrit Nahal / Stefano Aquilino
(Sales and Corporate Broking)
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CMC
Markets UK plc (Joint Broker)
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Tel: +44 (0)20 3003 8632
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Douglas Crippen
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Peterhouse Capital Limited (Joint Broker)
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Tel: +44 (0)20 7562 0930
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Lucy Williams / Duncan Vasey / Eran
Zucker
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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 Broadband
Networks.