Member Info for dallo

The only item of note on the EGM resolutions is the "Disapplication of pre-emption rights for equity issues for cash" .
This allows the company to issue new shares without first offering them to all existing shareholders.
Also the increase in the issued share capital sought at the EGM is 50% of the current issued share capital of c 33m shares...around 16.4m new shares that MAY BE ISSUED NOT WILL BE.
So if the company decides to issue the full monty of the permitted new shares of 16 million or so then existing shareholders who cannot acquire the new shares if issued could be diluted in total by 33.33%.
However I suspect they will not go for the max issue permitted IF THEY EVEN GO FOR ANY ISSUE AT ALL ....all will depend on the grants and maybe late news on some deals.
I suspect a small placing among existing Institutions at around 40/50p is possible.
The Disapplication of pre-emption rights for existing shareholders will expire at the next year's AGM.
So I will vote in favour of the resolutions as they appear reasonable and give the company the required flexibility .Even a maximum issue of 16.4m new shares to a new investor/existing Institutions would only lead to a dilution of 33.33% ...this is unlikely but you never know.

Tracy
I don't get it...information dated 15/9/2018
What has happened since.

From my experience it is virtually impossible to have a placing at say a 25% premium to the market price ...50p to current 40p ie why would an investor pay a big premium to what the Market thinks the shares are worth.
Either the shares move higher via good new flow
to secure a higher placing price or the placing is done at a discount with existing shareholders which is not uncommon on AIM sadly.
However David Levi's buy today could set a floor on the SP and is a positive signal to existing shareholders imho.

The management will view a placing as a last resort given the very low share price...giving a big slice of the company to a new investor at rock bottom prices will NOT happen as they will subscribe themselves together with the long term institutions.
So the free float will be much smaller in this scenario but let's wait for any placing document which may follow the EGM.

Prennie
There will be NO new money coming in if there is a placing imho.
Do you think the management /Institutions are going to let some new investor take say 15-20% of the company for a miserable £2/3m when the share price could be 10 times higher next year when the company takes off.
Not on your Nellie .

Not me this time

I don't agree that we will be diluted into "oblivion" given that there is near to 75% owned
by management ( 35%) and Institutions ( 40% plus).
There is probably another 10% in friendly hands....I own nearly 3% .
So no big Institution is going to get a big chunk in any placing for "pennies" .
I am absolutely convinced the company will get the grant from the Israeli Government so EGM may just be precautionary.
No Israeli government is not going to back such a strategically important company imho.

If the placing is done and the management and Institutions participate at say 38p then that will be a positive endorsement imho.
Also Ethernity holds 5 very important US patents for its technology which is a barrier for entry for competition and makes it a juicy takeover target.

We should welcome all sensible contributions and Matthew is only putting his views to the Board in a reasonable manner...so no problem to me.
The placing if it takes place should be welcomed
given the update and the fact that over 75% of the company is controlled bymanagement/Institutions

Not unexpected on cash reserves but more bullish on forecasts.
Looks at worst a placing at c36-38p to raise c£2m
in the absence of the Israeli state loan which I suspect is 100% guaranteed given the company's technology.
All in all a positive outlook and for me nothing has changed from an investment perspective.

Bid
I agree with your comments but with just $ 1m revenues at half year 2019 and future revenues clouded by very confidential agreements with International OEMs I feel the brokers have little to get their teeth into to provide solid research.
Ethernity has to be cautious about giving forward guidance supported by hard numbers because of this confidentiality constraint and thus we all have to wait for RNS news .
The brokers are somewhat in the dark about future revenues as are we investors.
Hence the risks and the potential huge rewards if Ethernity succeed.
DYOR
ATB

Also the share has a very small band of PI followers with little or no PR or broker research
.....not surprising given its tiny market cap.
Therein lies the opportunity for us here should Ethernity succeed....with no free float the potential spike upward in the share price could be extreme.

Perhaps we are missing the key point here insofar as the shares are so tightly held....over 75% held by management and Institutions ( Cipio and Miton
per Ethernity website on the 18 February 2020.
Add another 10-15% for smaller "insiders"...employees /Israeli friends etc and my 3% and you find there is a tiny free float of maybe 10% or £ 1.3m or so in money liquidity.
So in effect the share price will move in a range until major news and/or free float is expanded dramatically.

Rivaldo
Well done again
Keep up the good work

Bid
Just to clarify......just leaving the board if trolls arrive NOT selling ANY shares.

By the way it is very seldom you get a board like
this with so many smart people like Tracylid,Bid
Etc.
As soon as the trolls arrive I will be gone.
ATB

Bid
Sometimes best to keep things under the radar.
Normally I would not share such information
with people but this board is very measured and erudite and I feel we comfortable in our discussions here.

Make that 900,000 shares bought after today's
50,000 purchase.
Getting close to 3% declaration when my identity
will be revealed.
Decisions..decisions!

The dam will burst soon.
I have been able to acquire 850,000 shares by stealth over the past 2 months but I feel it may be getting harder now to buy in volume.
What Ethernity need now is a blockbuster contract from the likes of Nokia et al to send the shares in orbit.
Feeling very comfortable here now.
Hopefully not famous last words!

It looks like that,apart from the band of brothers and sisters on this board, nobody appears to be aware of our little company.
No recent broker reports, newspaper articles or investor forum gossip.
Are we alone here ....As Carl Sagan said on the existence of aliens in the Universe...It would be mind blowing if they exist but more scary if they don't.
I hope we are not the only ones who invest in Ethernity....now that WOULD be scary