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(Alliance News) - Ethernity Networks Ltd on Tuesday said that it has raised GBP700,000 from a share placing and subscription, and it plans to raise a further GBP75,000 from a subscription by the CEO at the same price.
Ethernity is an Israel-based supplier of data processing semiconductor technology for networking appliances. Its shares were trading 12% lower at 1.02 pence each in London on Tuesday morning.
The placing raised GBP650,000 through the issue of 65.0 million new shares at 1 pence each, while the subscription by an existing shareholder for 5.0 million shares raised an additional GBP50,000.
Additionally, Chief Executive Officer David Levi has agreed to subscribe for a further 7.5 million new shares at the same price, worth GBP75,000. The subscription was for repayment of director loans that had been made to the company by Levi.
On Tuesday, Ethernity said that while it was keen to allow existing shareholders in Ethernity to participate in the fundraise, it was not possible to do so in the necessary timeframe.
Following the raise, Ethernity's cash balances at the end of December are expected to be USD2.1 million. Net proceeds will be used to strengthen the company's balance sheet, in order to service existing contracts, capitalise on new opportunities and support its growth plan.
"Ethernity continues to progress its current strategy, cantered around its semiconductor technology for Ethernet Access and fibre access technology to deliver a broad offering to OEMs from IP licensing, conversion to eASIC or ASIC, through to delivery of a complete customised system," CEO Levi said.
"The fundraise, together with the collection of cash during Q4 2023, allows the company to be financially positioned for the next stage of its development to service existing contracts and capitalise on new opportunities."
By Holly Beveridge, Alliance News reporter
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