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JT
Fair point on running hot and cold .
However with the market cap approaching £1.5m and Bergen with a potential overhang of 45% of the enlarged share capital together with no buying even at 1.3p or no news from the company, the temperature has dropped from cold to icy.
I was hoping for a speedy appointment of Alaya Deutch to the head of finance and clarification on whether Bergen will extend the date of the Subscription Agreement ( which we should hear something about in the coming days).
Even if Bergen extends the date by 6 months it does nothing for the fortunes of the company or the SP in the absence of positive newsflow and clarity on the Chinese/Indian contract.
I agree that most longterm investors want out of the this company and have written their investment off.
No clarity from the company is creating a vacuum where investors are totally in the dark.
Hopefully we will learn our fate , whether good or bad,in the coming weeks.
ATB
Skid
Any lingering optimism of a recovery in this horror share is fast receding with a SP of 1.3p down 98% from
two years ago and a market cap of below £2m.
While some posters on ADVFN think I am going through the 4 stages of grief, I can assure you I am now past that and moving on and have written off this disastrous investment
Even the Uber bull TracyLied/ 504 has accepted that long-term investors have been conned which is remarkable for such an avid fan of Levi and his bunch of incompetent colleagues on the Board.
At 70 years of age I don't like losing so much money but still will enjoy life to the full.
I will still hold these Israelis accountable for the abject mismanagement of the company and the losses of over $40m and I still have friends in the City of London and will ensure Levi and Co never get near a public company in the UK or anywhere else again.
They are nothing short of criminal in what they have said and done to shareholders with lies , false forecasts, misrepresentations and delusional public presentations on Proactive Investors and at investors meetings.
Anyway sorry for long-term and other shareholders and barring a miracle Ethernity is heading for the scrapyard.
Snargate
Rerating underway following company's announcement in the half year report that it is to adopt a more robust capital return programme involving cash from the Founded Entities and possible creation of new Founded Entity( ies) to move its wholly owned drug therapies to final stages or even to sell these drugs.
Should Karuna's KarTX schizophrenia drug be approved in coming weeks by the FDA , its share price could rocket resulting in Puretech's 2.8% shareholding being worth c$300m not to mention royalties of $400m under the agreement with the royalties buyer plus milestone and other payments .
The $50m buyback had no effect on the SP and I think we may now see a special dividend of c£200 m if all goes to plan equivalent to say 60p a share.
That should get the SP moving imho
According to the Financial Times Markets Data tearsheet on Ethernity Networks, which appears up to date as it shows Premier Miton shareholding as at 4 August 2023, the staff numbers in the company are shown at 13 which probably excludes Levi and Baruch and some contractors.
So the company is now trimmed to the bone and hopefully can get to cash breakeven with a number of licencing contracts in the next month or so.
I have a feeling Levi and Baruch not to mention Bergen ,would jump at a bid of 7/8p as they would get all their investment back unlike us poor sods.
If the employee numbers in the FT Market Data are wrong then the company should correct them simply by notifying the FT of the correct figures.
Time is moving on quickly for this company now and we should know our fate very soon
ATB
Joe
David Levi and Shavit Baruch have been the main shareholders in Ethernity Networks since its incorporation in December 2003.
The IPO of the company in 2017 reduced their total holding to around 45% between them.
So Levi and Baruch had millions of shares at nil paid following the IPO dilution.
They were laughing all the way to the bank until the 5G Open Ran market failed to materialise and so they saw the SP crash from c160p in 2017 to 1.5p today and Levi and Baruch were forced to stump up real cash in the various placings of the past 3 years to keep the show going.
So Levi put in c£1m in these placings and with a holding of 13.5 million shares he has a breakeven of 7/8p before you take in the £200 ,000 per annum in salary in effect paid by shareholders as the company has accumulated losses of c$40m.
So he has lost nothing material apart from his pride and reputation and oh I forgot all of the shareholders investment.
By the way I stand over the statements made over the current employee levels in Ethernity.
ATB
Bid
The fact that Ayala Deutsch hasn't been appointed as Finance Director as yet suggests she may not want the job and who would blame her.
The savage cost cutting has decimated morale and it looks like Levi would welcome a bid at c6/7 p as he would get his total investment back but I can't see any potential acquirer keeping him in the job.
The company is running out of options and unless some significant PON licencing deals are announced soon it will reach a cash crunch by October/November
It appears the Board has finally seen the light and is taking its responsibilities seriously at long last.
As the main inquisitor at the AGM ,I asked some searching questions of the Board and reminded the directors of their fiduciary duties to shareholders.
Ethernity has now been reduced to an insignificant player with some interesting tech, US patents , valuable tax losses ( ouch!) and a listing on UK AIM
and the pitiful US OTC market
I said in my previous post that the next 2 months are crucial and I think with the bare bones operation they are running now it could be an attractive takeover target but sadly at a price where shareholders will still lose most of their investment apart from Levi and Bergen ( who could be tragically a winner for once)
With US Semiconductor stocks booming on the back of Nvidia soaring in the AI Chip sector, it is sickening to see Ethernity in the sewer.
ATB
Ethernity has now gone back to being a small Israeli based incubator tech business having been burnt in trying to play in the big boys league with complete systems solutions for large OEMs who played them like a useful design laboratory and never followed through with big contracts including the Chinese OEM who Ethernity boasted about getting a $7.6 m order from and is now apparently delayed as with with previous contracts.
Levi and Baruch are now focusing on the XGS PON Tech which , in fairness , is interesting and in a growing space in the telecommunications industry with a global market of c$15billion in 2022.
The XGS PON...10 GIGABIT PER SECOND SYMMETRICAL
PASSIVE OPTICAL NETWORKS is an in demand solution for cost effective, low latency transmission of data from a central OLT ( OPTICAL LINE TERMINAL) to
the destination ONT( OPTICAL NETWORKS TERMINAL).
The advantages are cost , reduced power , split fibre to over 32 different location points ( fibre to room et al) and most importantly overcomes the weather and terrain obstacles of traditional cable and Ethernet.
This is hugely important in China, Africa and the US low population states now the beneficiaries of the US Broadband subsidies.
So with Tarana and others targeting this market and Ethernity now attempting to sell its PON Tech via licensing agreements they may have a chance to get out of this mess.
The company now has about 18 full time employees and could reach cash breakeven if new licencing deals are announced soon.
At the current £2m market cap it is considered worthless by the market but if they get their act together there may be a chance of an
unlikely resurrection .
Not to mention a possible bid for the lot given its tax losses, patents, tech and stock market listings.
The next 2 months will determine our fate imho.
ATB
Joe
There is only a link to the AGM for those shareholders who have registered with the company to attend the AGM following written confirmation from their brokers of their current shareholdings.
This is standard procedure for all AGMs of public companies.
Oscar
The new Board appointments are very positive and demonstrate a professional approach by Immupharma which wasn't apparent in the past insofar as the new Directors have skill sets matching the current regulatory, legal , medical and track record requirements needed by the Board to accelerate the Lupuzor Phase 2/3 trial, CIPD trials , Rest of the World Lupuzor and CIPD rights negotiations with 3rd parties et al.
Promising RNS in my view and now time for some real action.
I have received a very short reply from David Levi in respect of my Convertible Bond suggestion to get Bergen out.
It reads simply as follows
"Thank you for your email and suggestion"
"We are working on multiple paths to resolve the current SP situation "
Let's hope that they are working on getting the SP moving higher as there is no evidence to date of this happening or their ability to do so.
AGM on Monday so let's see what the Board has to say.
ATB
Skid
Fully agree about DL but the whole Board must take responsibility for the damage it has done to investors.
The exercise of the 6p warrants is the only possible source of funding on the horizon and this cannot be achieved whilst Bergen overhang the SP.
That is why a White Knight who will take out Bergen via a Convertible Bond or another structure and which gets rid of the massive overhang , is absolutely necessary or maybe a sale of the company if all else fails
Either way Ethernity is toast if it cannot get rid of Bergen, secure the warrants and get substantial licencing contracts.
The situation at present is now critical and investors need action .
As usual when I post I am attacked by the poster on ADVFN who says I am depressed.
Far from it I am in great form and just trying to be constructive.
He is beyond redemption and I will say no more.
While it would be galling for us all to see Bergen get out at a small loss , the company and other shareholders have no chance whilst they are holding the Sword of Democeles over our head.
Shareholders can attend the AGM on Microsoft Team Meeting online on Monday the 14th August at 9am.
I will be attending and one of the suggestions I will make regarding Bergen is for the company to issue a Convertible Bond to take Bergen out and alleviate the
the current insurmountable pressure on the share price.
The mechanism for this issue would be to have a White Knight ( Tarana/ US /Israeli company et al or one of the 30 billionaires in Israel ) to subscribe for say $1m and offer Bergen 75c in the US Dollar for its shares.
At the moment Bergen cannot sell its shares because its very own overhang ensures that no-one will buy any shares in Ethernity while Bergen is around so it is screwed like the rest of us.
The Convertible Bond may have a coupon of say 6% p.a. plus rights to convert at a price of perhaps between 7 and 9p thereby giving the the company a chance to to secure the 6p warrants and thereby ensuring that the Convertible bondholder(s) will not unduly dilute the existing shareholders and have an opportunity for a capital gain.
For a large company/ wealthy individual this is an excellent opportunity and will help Ethernity to move on and develop.
Any thoughts on this from fellow shareholders would be appreciated.
Ethernity must think outside the box in its present situation.
ATB
Our Tracy is saying I received inside information on the Bergen extension after discussing the Bergen situation with Ethernity as is the right of any shareholder.
She asked the same question of Levi who confirmed the Bergen extension even though the information was not RNS to all investors thereby by her logic , she received inside information as well.
If this was a positive piece of information you would have expected the share price to move higher which it didn't.
The real issue is not just Bergen but whether the company can survive or not .
In this scenario it doesn't matter a jot whether Bergen call for shares before September or thereafter as it will be burnt like all other shareholders.
Let's hope it doesn't happen but hope in Ethernity is putting his hat on and heading for the door.
ATB
Yes ADVFN is truly awful and demeaning.
I put this information out today for the benefit of all shareholders and was immediately vilified by some notorious posters there.
I could have kept it to myself but we are all in this mess together.
Obviously now that it confirmed again I don't expect any apologies from you know who.
LWHL
Thank you
I see some ADVFN posters are still disputing the email
I received from Ethernity.
It was not sent to me in confidence and if any other investor wishes to get direct confirmation themselves from Ethernity, they should go ahead.
It is now public knowledge and possibly should be
in a RNS.
Following a number of repeated requests for information on Bergen from Ethernity, I received an email confirmation of the 6 months Bergen extension.
I have shared this confirmation email with certain investors who are also posters here who will confirm the veracity of my information.
Unlike some of the vile posters on ADVFN, I do not lie.