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This is largely future dilution and funding which should strike at a higher price. I like this a lot more than the placing at 17p.
I square it in my mind with the fact that I have now got 5 x more than I intended when I first looked at 84p. My average is mid 20's in two accounts and 32 in another. I don't think that people appreciate just how big this can go from here so they focus on the here and now. This was never about the here and now for me.
I don't mind dilution either if it means success...10% of something is worth more than 100% of nothing.
However the sweetheart deal being handed out in the Subscription Deed is only digestible by me and other long term investors if we make a good return on our investment.
However good to see SP holding up well as I was concerned it would fall back on more dilutive fund raising.
We are still in the game!
I believe that the additional funding is to attract some key individuals from a business very close to Ethernity in Israel.
Ethernity are big news in Israel and they have a lot of local interest. Israel is a talent hub and that is creating some competition for quality transfers. Ethernity have a strong team but several key vacancies to fill. There is a lot at stake and they need the right calibre to meet the projected demand. Product lines need to continue to evolve to stay ahead.
This is a critical time and they seem motivated to do more than just survive. Now is the time to be aggressive and it is hard on a budget.
Dilution is just not an issue for me, falling short of the opportunity is. Ethernity should secure a substantial percentage of the work, much more than 10% VSA suggests. The market is also much larger. One thing that I have found with David is that he is always a few steps ahead.
Totally agree Dallo, I have consistently been stating cash is still a mjaor concern and have big concerns about short term, this shows that the original warrant program wasnt enough and the SP hasnt repsonded like they expected so they have had to take other measures. I really dont like the fact they are releasing more shares but also very psotive that the finaicial security is much stronger and in a good palce to now focus on dliverying contract, jsut need to keep them coming!!!
Fairview
I have consistently expressed my concerns on the petty cash the company in the context of its 5G ambitions and calculated that it enough cash to get to the 31 December..I was correct as the new Subscription agreement testifies to
I hate Share Subscription agreements as you don't know the ancillary clauses and get out arrangements and possible amendments possible along the way.
The only way Ethernity can best maximise the Agreement is to get the share price much higher through successful business deals.
Otherwise this agreement will be pretty one sided.
tracylied as one of the main contributors to this board I thought you might have at least acknowledged that you didn't see this coming. Whenever anyone suggested that cash was tight you said they didn't know what they were talking about. I think I raised the point of how they were going to continue development of their products without cash. I don't remember you or anyone else agreeing with me.
For the record I find your posts on this board about the technology and market opportunity very useful.
I think this is a great result. We've put to bed all issues around running out of cash whilst Ethernity go out there and win contracts for 5G work! So clearly a massive positive, a little bit of pain for us in terms of dilution, but lets be honest this company has little alternatives (given its size, and the stage of its life). The methodology of doing it in 6 monthly periods, gives the SP a chance to recover as they win more contracts etc, and not give the company away at this price.
And we all well aware David is very careful to not give his company away (given how much he holds), so will have thought long and hard before agreeing to this.
Skid it doesn't require s/h approval because of the disapplication rights granted at the AGM to directors to issue up to 20m shares without a vote
Agree with point 3
This is currently priced with a very high expectation that it is not a going concern, at least this is off the table
1. For the legal bods out there why doesn't this need shareholder approval?
2. I want to see the beneficial owners of this fund, I cannot understand david diluting at this level unless there are such r and d opportunities with a short term massive payback
3. This is currently priced with a very high expectation that it is not a going concern, at least this is off the table