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Ask I agree , the amount raised is confusing as you say buys them a few months. The problem may be Levi wanting to hold on to as much of the pie as possible.
They are not Ethernity projections but industry projections. I think that they will turn out to be very low as we are already seeing new markets for fpga and virtual solutions from previously undisclosed sectors deep within the core.
Ethernity's royalty stream will come from soft and virtual ware. Products to run on and through the fpga, in fact any fpga.
It was a figure quoted by David Levi in an interview. You need to remember that these are future markets although they are not far away now with mass deployment less than a 12 months away. There will be no facts for any future markets. Projections are for $1.2bn over the next 5 years so as market leaders in the first major market $100 million seems quite realistic to me.
Ask it is not 700k.The warrants don't forget. 3.25m at 20p and 3.25m at 30p
Hi Tracy,
Where do you get this £100m revenue figure from please?
sounds pie in the sky made up figure - has the company stated these figures - or from a broker note?
please back up your figure with some facts - Thank you
Something doesnt add up though, as why such a small raise, 780K probably buys them a few months operating expense, so if there is something bigger coming by the end of the year to give them regualr income I am sure we would know about it by now. And if something big was coming then why release @ a measly 12p? that doesnt show any faith.
I would have liked to see another way of raising - especially when relatively small £ when we are indeed as you say potentially not far away from good revenue numbers. I’ll stop my ranting. gla
Prennie I don't think anything has changed $100 million revenue from the Chinese deal is still very much on the cards. However that was very much future income. I guess this is typically AIM
Skid. Agree it is amateurish. I have stayed away from the investor calls - but I might ask to log in to the next one and voice my opinion. At the same time I’ll call Levi out for spouting 100million dollar revenues on video interviews, then raising 750K at 12p 2 years later.
Unfortunately they were duty bound to release the information about the funding requirements and it was there for all to see. The market anticipated that would be difficult. I think that they have shown alternatives to a straight low placing with the warrants and the enforcement of the warrants. Now all they need to do is hit 30 and 40p to get the cash. I see that as a strong incentive and I suspect that we'll see news released in the next week to support that.
Rennie - totally agree. I am a qualified accountant and an emea fd in the software sector.
Totally amateurish and a real worry that when they are a sizable company having poor control and process.
Actual price is 12-15 as PEEL are still showing the old values. I will be taking some today.
It is good to get this behind us. It is always a problem when you disclose needing funds in a terrible market. Yes this could have all been done at 40p but this is the AIM.
We have a 5th MM now listed. The fund raising is designed for the growth of the share price and it is simply to carry over the next 12 months.
My main worry is that no one at ethernity seems on the ball with numbers and finances. David clearly knows his stuff on the tech, but the SP was at 40+ in Feb. Someone on the inside looking at the forecasts should have known then that a raise was needed. Good to see there have been no sell offs this morning - but I think there are only about 10 of us invested in here so wasn’t expecting many offloads. I hope you are proved right in the long term Tracy for all our retirement plans.
Given the notice served these are actually already sold at 20 and 30p assuming the share price hits the triggers.
Level 2 looking a bit confused PEEL still asleep
Bid I bet they wish they were. They are a instrument to offer a share at a fixed price. So the 20p warrants are triggered at a share price of 30p where the participants will be given notice to exchange their warrants for shares at 20p. Then 40p triggers the 30p shares. Basically it is a promise of shares under the conditions that the share price increases to that level.
Ah ok cheers skid. Is anyone calling their broker to get them to buy some off Peterhouse?
They do when exercised at the strike price
I'm not sure how you've got to that figure TL, the warrants are free attached to the shares aren't they? They don't raise the company any extra capital?
So the total amount raised about £2.3m.
Simply staged over the next few months to meet the requirements until cash positive about 12 months away. Average price is just below the current share price. 13m shares will be issued once warrants converted.
Haha, oh trying to live up to a nickname are we? Is that what you’ve been trying to do over the last year + by continuously ramping targets of £1/2 a share? How’s that worked out for you?
Shear class. Not living up to your name with that silly little post. On your way
Skid yes but these guys are holding at 130p already from their interest in the IPO. Then they have cut their fee to save money.. Yes they can afford to lend Ethernity funds I am sure but why should they for 5% when they can reduce their average. They will still be holding at £1+ a share
Traceylied, I have to ask what is your connection with ENET? 128 posts in the last month, all on this BB, you do realise other shares exist?
This is a pathetic amount to raise & suggests they couldn’t attract any serious money - otherwise why wouldn’t II’s have piled in on that discount? My guess is that Levi is the problem, he didn’t want to dilute his holding & has likely been in denial all year about the need to do so. Otherwise why not raise £700k at 40p instead of going through such a pallava?
Correction 3.25m at 20p and 3.25m at 30p. Making at total of 13m potential new shares.