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Spot on dallo. You need a strong financial position. Things are looking good in my opinion. I bought some today. Would like to get more because I think this price will look an absolute bargain by the end of the year.
Skid
I think we are forgetting that Ethernity is now swimming in a bigger pond with larger fish.
If you are with the big boys then you must show financial strenght and this is the reason for the placing as the big boys want to see strong cash support in the company they are signing contracts with.
This is my take on it for its worth . I think I am right and I expect real progress in the next 6 months.
Still believe in the management .
Imho
But do your own research .
So what do we think 5G IF were up to today?
Dallo.
Okay so we really need to see these rnss flowing in the very near future. Why give an absolute guarantee on funding 5 weeks ago if their is a 10, 20% chance you are going to backtrack - even if it's based on more business you just look like you haven't done your homework.
If it is institutions they clearly are giving guidance which they are are not giving to PIs.
Skid
Agree with your thoughts but I have been reliably informed that the company has sufficient cash to meet its operating costs for 2022 but new contracts which may push into late 2022 and even current contracts being negotiated of a larger size require backstop funding .
The company is insistent that the statement of adequate cash reserves for 2022 is correct based on the then existing and projected business outlook.
I think the current outlook is for much larger business volumes in 2022 and hence the placing.
Remember Ethernity has to invest time and money now to secure future contracts and therefore the potential higher value contracts in late 2022 require higher investment now.
By the way almost all the placing was taking up by Institutions which is very good news imho as this is the first time since the IPO that they have subscribed in size.
Also remember the share price was 40p 4 weeks ago.
More confident now and we should see SP move back up quickly when the dust settles. imho.
DYOR
comment from sharephrophets
Ethernity Networks – following recent RNS Reach, discounted fundraise (natch!)...
Dallo.
I now have a three month timescale.
Either they are now aware of business they are about to contract which they thought was simply not on the cards at the interim report five weeks ago and which will completely change their trajectory or business model, or they really have poor control of working capital forecasting. If it's the former this needs to come out in a q4 rns.
As always time will tell.
Fairview
Fully agree
And if you really believe in the medium term outlook which obviously the placees do( who snapped up the discounted shares in an oversubscribed issue ) then you can buy some extra to get ahead of the 60p warrants.
All depends on your risk appetite .
Management has to deliver quickly now and produce substantial revenues as investors are tired of these cash calls .
As I have said repeatedly the next 6/9 months are critical .
I bought an additional 100k a few weeks ago at 41p and will now await some really positive updates which still look very probable.
Trust but verify!
Skid we're talking about pennies here aren't we. You can buy shares in the market for a couple of pence more than the placing shares. I'm surprised the sp hasn't recovered more ground. Cash position looks solid now.
Yes, had that situation as well skid.
It sounded to me like they are going to take on substantially in excess of £250k.
I could be disappointed, we’ll see.
Uhlf.
Have requested money in placing in the past, they took all my cash then gave it back after the allocation was scaled back.
Offers I have seen in the past have been basic (say one share for five currently held) and an excess which is subject to scale back.
I can see 250k massively oversubscribed due to the level of discount and attached warrants, by now much I haven't a clue as you're allowed to apply for whatever you want. I have applied for some in my SIPP but too much hassle selling / moving cash between account in my total isa portfolio and already out in this year's allowance. don't want to sell is a holdings to find without and guarantee of not buying back in. Not ideal as I would have preferred to used my isa for this as the eventual benefit is more flexible and not subject to lifetime limits. I don't think the BOD understand these issues with UK shareholders, or to be frank give a toss anyway.
As always with ENET we'll see what happens, confidence in the BOD a little shot today though.
skid
well, they've asked for me money pronto, so I reckon I've got them
Agree re your other points, but it's better than excluding existing investors totally, which is often the case
I think it's also discretionary skid, so if a holder with 10 shares last week applied for 100k shares they can be scaled back. I guess the alternative would be a rights issue but that would require a prospectus and be much more costly?
Uhlf.
When you say your bid has been "accepted" I would not be take this as contracted, I think peterhouse are merely confirming they have the request.
The wording of the rns is very ambiguous on the broker shares in terms of the total available and the allocation methodology.
I do find the lack of any proportionally to existing holding, say a 5 existing shares to one new, a real issue to existing shareholders. Someone with ten shares seems to have the same rights a a long term holder like dallo?
ps
If you don’t mind me asking dallo, have you subscribed for further shares?
I think the £250k minimum through the broker option will be substantially in excess of £250k . imo
Thanks for your comments dallo, which I agree with.
I’ve just heard my bid for further shares has been accepted.
I’m not up to your sort of levels, but I’m very happy with what I’ve got and will be delighted to exercise the warrants for 60p when we are hitting over 80p!
GLALTH
Uhlf
Today's placing came as a surprise as I thought it would be toward the end of
the year when the SP was nearer £1 and the placing price at c70p.
Obviously, I was wrong but deals need financing, and the bigger the deal the larger the
the investment needed by Ethernity to deliver hence the need for more working capital as contracts
are now larger in size and value under the new strategic change in focus by the company.
I was not notified or approached to participate in the placing which is very bad form given my 3.7%
shareholding.
Still a firm believer in the company and its prospects and given the greater visibility over funding
I feel the derisking of the investment has improved greatly.
You can buy in the market now at a slight premium over the placing price so no big deal not
getting in on the placing and if you feel that the SP is heading back up you can get a better deal than
the 60p warrant holders if you have a taste for more risk.
Management is now under more pressure to deliver after further dilution of loyal shareholders
and as I have said before I will be looking for major delivery by management over the next 6/9 months.
im neither Bull nor bear.
as i said im locked in.
its not about TRUST.
its about CRITICAL THINKING.
I'm assuming if you don't trust Bulls, Escape you must therefore, conversely be a Bear. so sold out your 185k worth of shares this morning. How long did you plan to invest for? to be an LTH.... or do you consider yourself a day trader. I get that its a major disappointment I obviously as a LTH share that but if you could afford your investment then todays SP is todays worth, where we will be in 2023 is my interest. We are back to slightly below where we were a few weeks ago. Chill
And yet you're still here.
You say you saw the signs and did nothing !!!
Give us a break - take ownership of your investment choices
one of the biggest bear signs there is is someone on a bb saying he has contacts and such and such will happen. hint hint nudge nudge. every single share ive been in where that type of behaviour happens the share price collapses.
still here with all my holdings. but i would never sell, at this price as i would lose money overall.
im locked in.
timing is everything, whether i like the company or not. and no i didnt invest because of whar was said here, but what they said certainly fanned the flames.
escapetohome, all very easy in hindsight .. if you're making investment decisions from comments on a board you've only got yourself to blame. I assume you have sold out now?
There are so very big hints in the investor presentation for all to see. I doubt this is about working capital.