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I don't think that Ethernity will fear the larger competition. Certainly the smaller guy has the advantage here. The larger OEMs and fpga producers lack the versatility. Ploughing the centre ground is where the bulk market is.
Will there be more competition for the core products ? Is that not where the larger chip companies are focusing on more?
I strongly suspect that the product they are working on is a turnkey product for the core as the need is looming and once users are on board with the ACEnic-100 based solutions for the UPF it seems a easier sell.
The key sells though are the OEMs and integrators. We know a couple of OEMs have built their solutions on ACEnic-100, integrators will for sure because of the neutrality and price.
We know that TietoEVRY and FiberHome have committed to ACEnic-100. We know that at least one of the three major Chinese Telecom are using ACEnic-100.
Snippets I know but the picture is building. Anyone can access ACEnic-100 through MITs and Techtronics. There will be lots of small developers and integrators looking to get in on the private network scene.
Skid I strongly suspect that the investment is required to attract several key personnel to deliver specific products for mass deployment. Ethernity are ahead of the current integrator requirements but the game moves on quickly. Sales will escalate rapidly and Ethernity need to be positioned for the natural progression rather than struggling to meet demand.
Largely hardware will be produced by OEMs as part of their product but with integrators and direct sales that won't be the case.
These times are hugely exciting and literally will produce a newstream that will show engagement then sales. Sales will drive the share price.
you need to sign up to read the article but it shows the 5g sector is in for big time investment.hoping for a positive week ahead.
https://www.telegraph.co.uk/business/2020/10/03/three-seizes-5g-boom-mobile-masts-sale-renews-merger-talk/
Hoping
- Required for working capital and recruitment to support specific customer funded r and d not yet signed
- A customer stating before a contract is signed the company must be on a sounder financial footing
Or a general mix of both.
I think that it's impossible to buy £1.7m worth of shares without forcing the share price up. I also suspect that this is an individual close to the company and known to David Levi. I suspect that something pivotal has happened since the placing was committed requiring an injection of funds that couldn't be obtained by the warrants.
We'll have to wait and see what's in the pipeline but clearly something chunky is looming.
The funding is not from some company who will take the **** with massive dilution and that is good enough for me . Wether you’re a dog or a rocket scientist if you can smell the bacon you know it’s lunchtime ! Have good weekend y’all
Final thoughts
5G can, it appears, decide to pay for the 880,000 at any stage of the Agreement
so it has a free ride but strange it hasn't included them in the current tranche as Fairview
rightly surmised.
Yes it seems as though they structure these things to be as unclear as possible but like I said I believe that 5G Fund will be paying for them but how much and when is unknown.
Fairview
It looks like 5G has a free ride on the 880,000 until it is determined whether
these shares are part of the £500,000 or some of the later tranches in the
Subscription Deed.
I am even more confused now...time for a glass of wine.
Fairview
It is a bit confusing insofar as the 880,000 MAY apply as part of the total Subscription
amounts but if it doesn't then 5G may have to pay an additional amount at the current subscription
to cover the 880,000.
When they have to pay is up in the air and has rightly caused confusion.
Thats my reading of it but open to correction.
Yes I understand all that Dallo. I am just point out that the 880,000 shares are either going to be part of the shares received under the £500k payment or they are going to be paid for separately. They are not just giving them away.
Fairview
Please read RNS
The free shares totaling 1.335m were issued and listed on the 30th September.
The £500.000 was received on the same day.
The prepayment shares in respect of the £ 500,000 will be issued under the terms
of the Deed and the Investor can seek the shares on the £500,000 within the next
18months and so on with the other tranches.
I suspect that the investor may demand the 1st share issue soon but I dont know.
The way I read it Dallo they've got to pay for those 880,000 shares one way or another. They are either part of the subscription agreement or they are paid for separately. It's not a straight £227,000 in 5G Fund' s pocket. Only the 455,130 are being given to them for fees owing. That's how I read it anyway.
01234
If the company is successful then it appears the Subscription Deed is a win-win
for management, the new Investor, and all shareholders.
Levi structured it on the basis that any dilution will be dramatically reduced
as the company grows.
By the way, I am convinced that the new investor is an individual as the off the shelf
Delaware company 5G Innovation Leadership Fund was incorporated in August
specifically for this transaction.
He/She is a " specialist investor" who I suspect is familiar with the company
and known to management.
Even if He/She has to subscribe at the current SP of 17p there will be an
unrealised gain of c 227,000 ( 1.335 million free shares at 17p).
Not a bad risk indeed.
Levi now has to ensure that the new investor gets as few shares as possible
but still makes a sizeable return.
The only way He can do this is to drive the SP higher by successful achievement.
Hi Dallo. I think it is good for Ethernity that they have financial stability but I don't understand the logic of 5G Fund.
We don't know yet if they are being given the 880,000 shares or not. That was one of my points that 5G Fund don't appear to have decided whether to pay extra for them or take them as part of the subscription agreement.
I'm just surprised that 5G Fund want to potentially put £1.7m into Ethernity before they get any shares. If the price of the shares moves up over the next 18 months then they lose out big time. The only gain they would make in that case would be the roughly 10% discount on the shares. Even the gain on the 880,000 shares will be determined by what consideration is paid for them so if they wait too long they miss out again.
I know didn't ask the question but cheers for the explanation D , I for one feel it is a good arrangement .atb
The free shares of 1,335,130 were issued and listed on the 30th September.
The shares in respect of the £500,000 received by the company on the same day will be issued
at the investor's discretion on the prepayment dates.
Fairview
Fully agree that the Subscription Deed is most unusual insofar as it " appears" to favour
the company regarding the issue and pricing of new subscription shares.
However, the investor has been given free shares as a deal sweetener.....880,000 at a nominal value
and 455,130 to cover fees......effectively over 3% of current shares in issue.
If the SP is at , for example, £1 at the prepayment dates then the new investor will be issued with approx 1.82 million
shares which when added to the free shares will give him total shares of 3.155 million shares valued at £ 3.155 m
for an investment of £ 1.7m in total.......an 85% return.
Conversely, if the SP drops to say 10p at the prepayment dates then the Investor can , if he so wishes, subscribe for
18.2 million shares and thereby obtain 29.3% of the equity.
Obviously, a share price of 10p may be an event of default in the agreement and the investor can walk away.
To summarise it is clear that Levi and his team must deliver over the next 18 months and achieve
a high share price to keep everyone happy and maintain control of the company.
The new investor will not complain if the share price rockets and neither will the rest of us here.
So it is showing the are and extra 2 million shares in issue on this page do they need to give any other notice?
Indeed the observation was really about delivery on time as in the RNS for the listing of the new shares.
TL with regard to the new shares I'm sure you are aware that the 1,335,330 are separate to the main agreement. It appears that 880,000 of them may go towards shares due to be issued but only if 5G fund want them to. It's quite bizarre really because surely they would know whether they want to pay for extra for them or not.
There is something else about the agreement that I can't work out. For each tranche of investment, 5G Fund have 18 months from the date of payment to request issue of shares. Anyone else find that weird? They should by now have made a payment of £500k but they don't need to request issue of shares potentially until 2022? If the share price moved considerably higher they would end up getting a lot less shares for their money. Why not pay the £500k and take the shares now?
Anyone with knowledge of corporate financing make sense of this?
The new shares were admitted for trading on the 30th September 1335130. I assume as they are a fund that they will be holding them all for appreciation.
Yes but that is why I bought at 16 but not 18. Some lame profit takers I am not bothered about. I am not here for peanuts. I will only add on dips not sell as momentum stalls. I have seen many struggle to buy even £10k worth when a uptrend is established.