Shaun Day, Greatland CEO gave an upbeat presentation to over 800 London South East investors. Watch the full video here.
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Buys showing in red fwiw.
I don't agree. I think they said they had enough cash for operations. Honestly, someone thought that $3m cash was enough? I said many times they were short of cash. In this industry the BS is king and you need WC before deployments to build inventory.
I'm happy that they improve the WC position but unhappy with the discount.
They maybe said that because they had other projections or to reduce the cost of equity.
One year ago was at a call at RADA and they said many times no cash was needed. They raised in a month and the stock and company are good and perform well. It is not new.
The issue is not the cash raise, it's the BOD communication and underlying this control and understanding of working capital.
Why not hedge yourself a bit and state "based on current business expectations we believe we have current cash resources through to the end of '22". Then the rns states we have a significant change in expectations.
Whatever happens now there is simply no place for the BOD and management team to hide, no more delays, no more excuses - time to deliver.
we were all the summer at 40-45p and in a few days run fast to 55p. So honsetly thats not that crazy.
Imagine if they had issued a month ago at 25p...
We’re all slightly mad to be here Sergi let’s be honest ! No offence intended Atb
yes Dallo. This board is becoming mad as well. Sad.
The placing was not a surpise as evryone could know that with $3m of cash they were short of WC.
The only discussion is about the price, why not 40 or 45p, and Dallo already said the reason or part of it.
The rise from 40 to 55 was very fast and caused by unsophisticated imvestors that went crazy, as you said
Agreed TL and that’s all I meant too Dallo . If you are following the asylum thread on advfn it were as if the wildlings knew a storm was approaching lol. Anyway most of us small band of enetters are still here , hoping the recovery is boosted by some good news soon. Atb
It's little reflection on the company that we had a 900k seller at a premium to a placing. In order to encourage investment they have to talk to people and people talk to other people. I said at the time that it's a crazy time to sell 900k shares into a rising trend. It wasn't crazy if you knew that you will replace them with cheaper shares
The AIM is totally unpoliced, zero chance of getting caught so it happens. The chances of the leak coming from Ethernity are very low. I have several contacts working there and two with partners working there and they all didn't know anything about it. As they are not shareholders and can't buy the AIM from Israel they didn't much care.
Tuesday will open slightly red but we should see a rebound.
Let me clarify. If you read my posts I’ve said I’m sure the ENET board behaved perfectly.
I have never ever cast aspirations on the board of ENET, never, so let’s be very clear on that one.
What I have said, and I think it’s pretty indisputable, is that insider trading goes on all the time. The evidence for that is very clear, as you can see with many placings. Companies cannot control what the myriad of advisors, brokers, nomads, those made inside do or pass on . That is a fact of life, which I’m sure you know.
I also made a comment wrt 5G fund. The comments were my own personal view, as none of us here know what 5G do. It has been noted that the ‘double tap’ trading attributed to 5G has increased in recent weeks. Perhaps taking advantage of an increasing sp and increasing volumes. As 5G are or have been ENET’s major funder and backer over the last year and ENET and 5G clearly work closely together, then I suggest it would be surprising if they didn’t know about this latest funding. That is my view and I don’t think it’s an unreasonable one.
Finally, I have been an investor in ENET coming up for a year and a firm supporter of the company. I today further demonstrated my support by taking part in the placing, subject to confirmation. I know you as well have been a great supporter of the company.
I do hope you are not suggesting my posts are contributing to turning this site into a ‘cesspit’ like one particular thread on the advfn board. For info, there is now a moderated thread and one poster intends to start a ‘guild’ thread, where all participants are on an invite only basis that can be rescinded.
Anyway, if you are suggesting that re ‘cesspit’ as, imo, that would be well out of order but please just tell me straight if that’s your thoughts.
I remain a strong supporter here but the AIM market doesn’t play by Queensberry Rules and ENET can’t be surprised re robust questioning given their association with 5G IF about whom we know next to nothing.
Totally disagree with you and 01234 about insider trading
If a leak occurred then the SP would have been 40p last Friday not 54p.
I hope this board is not becoming a cesspit like on that despicable ADFVN site .
Mark reads some of the boards and after comments about insider trading I feel he may view such views as a slight on his integrity .
I have given my views on the placing and I am signing off .
Unfortunately insider trading goes on all the time. You only have to look at most placings to see the sp dip beforehand as insiders sell and/or sell forward. Nothing ever gets done about it. I’m sure the ENET board behaved perfectly, but they can’t control what others do.
Skid I will just add that the movement last week was not coincidental pre announcement today and how can that be legal. You like me must have seen it more times than hot dinners on the aim and that kind of action won’t be under ENETs control that is for sure. Atb
I’ve also been a lurker on this board since last December buying in between 29 and 38p so seen some profit disappear today. Think I paid 38p about Christmas of last year and could buy today just over 37p but the investment case is certainly stronger today than last Christmas and hopefully now they have the cash they need to progress the business . Can’t help but feel a little shafted with the placing price but a few positive announcements and the price should recover
Ok skid as you can tell I’m like Henry’s cat I know everything about nothing and not too much about that. Just surmising .
djia absolutely agree. We'll see the bounce and rising trend picked up again. Interesting as the last two weeks we have seen that only to be dashed by a blindside event. The details of this were tight and I suspect that money has come from the US mainly.
This would be insider trading, illegal and call into doubt the integrity of the board.
I would like to know who the new investors are, and what information has been given to them which is not being given to PIs.
The presentation suggests 6-10000 units annually. I think that we all expect modest figures from this management. However $6-10m from one of several NOW production orders is a significant chunk of next years running costs covered in just one contract. The sales could be much much higher given the 5g deployments will gain pace and IDU will be one of the growth sectors. Sales are not some vague time in the future they are now and will gain volume quickly, certainly this year.
Been a lurker on the ENET board for around a year. Bought in last October for around 16.5p.
Maybe it's a good sign that some people here who seem to have the CEO on speedial seemed unaware of the fundraise.
Disappointed with how it seems to have been handled but, true, discussions probably started when the share was in the 40p zone and then insiders likely bought it up and sold.
It has so many similarities to the Portage fundraise on the Nasdaq which recently had investors fuming.
Anyway, prospects are very good for Ethernity.
On a technical chart basis, which is the area I have most experience in, today's news may end up being the perfect scenario for ENET. Fundraise anywhere nearish above the two year descending trendline that has capped prices around 60p and then you risk the fundraise price being below trend and causing all sorts of problems if things don't go smoothly.
This way, the price will likely bounce back up on news, break out, and the 80p accelerator is a price well above trend. Even if it drops to the 60p, the trend support would be low 50s by then so, at worst, a touch of old resistance/new support and up to £1 and higher. Gap fill at 1.29/30 is inevitable imo.
Good luck all.
If the IDU has expected sales next year of 6-10000 what cost is that ramp up or is it all built by the OEM. The unit cost is around $1000 to the OEM who obviously mark up from there. I was told that the IDU would sell at $3-4000 a go. The unknown is how it affects that aerial vendors sales. The product must be superior and unique as an IDU so they could snatch huge market share.
How does Ethernity respond to that, does it require investment... I don't know and can't get a straight answer.
Thanks uhlf, just imagine if 5G knew and decided to finish selling before today’s rns. Something else that Dallo alluded to is the prospect of institutions joining in . Now that would indeed be a fantastic sign. atb everybody onwards we go
I think that it was around the 26th August that Mr100k started to sell so I think that it's quite obvious that was the point at which the strike price was negotiated. It probably didn't look so bad at a 40p share price. Also that was around the time that we were told that they were funded either until 22 or for 22 depending which you took.
I don't buy the stronger balance sheet stuff. Ethernity has unique product that's in high demand into anticipate sales next year of more than $20m. The financial risk is small but as we have seen delays are always a possibility. Given the diversity of the portfolio that risk is substantially offset.
I expect directors to shaft shareholders. The balance is restored by the fact that shareholders can sell and walk directors can't easily. Shareholders, buyers and sellers will make their decision. The share price will be turbulent. Today as always the share price reacted to the strike price but ultimately the average price per share will be 47.5p with the warrants. I think that they will be triggered sooner rather than later.
I expect the share price to bounce back. Ethernity now has multiples of the interest it had 6 months ago. The portfolio is alive and sales are really maturing. I suspect that is what this money is about. We still have no real clarity over who and how components are built. We are told Ethernity are not a hardware company but the reality is the product runs on something units in some cases are virtual but not completely so. The IDU for example who assembles the components of the first 1000 units.
So one of the options I put forward earlier today, the expectations they now have were not considered even as a remote possibility five weeks ago - effectively a perfect storm / best case scenario across multiple contracts.
If so, really looking forward to multiple rnss of expansion of existing contracts and major new contracts which completely change the trajectory of the company.
At the end of q4 the company really does need to go through these business opportunities direct with shareholders on an investor meet at a detailed level, including expectations of revenue / margin / working capital for 22 and beyond. A sh###y ppt doesn't cut it anymore.
Because 5 weeks is a lifetime in the 5G world
The placing was not done in 2 days but over weeks when share price was in the 40p plus range.
Whatever has happened with current contract negotiations has lead to a sensible management decision to beef up cash to reassure the big beasts they are talking to that Ethernity is financially solid to deliver on a much bigger contract(s)
Put more cash on the balance sheet , take a short term dilution for greater reward is smart imho.
Levi knows this and so do I.....14% of a £200m plus market cap company is better than 20% of a €25m one.
I am more confident than ever now and have full faith in management to deliver big.
They are playing premier league football now having been in League2 with previous strategy.
Re 5G, we’re all guessing, I reckon they were quiet as they were selling as much as they could get away with over the last few weeks, ie since they were told of the placing.
( and I assume they were, hard to believe anything but that they knew)
No I am forgetting anything, what has changed so dramatically that they are now dealing with bigger companies when they weren't five weeks ago?
Absolutely agree, if you are giving a multi year multi million $ contract for a vital element in your service provision you want to deal with a company that has the ability to support it.
As bystanders you know that, I know that - why the hell didn't the board know this as a potential option (even at a low probability) five weeks ago. You would have thought when they took the 2021 revenue forecast down they would realise contracts and deployment always slip.
Chairman needs to get a grip here, asleep at the wheel.