Member Info for dallo

As a suspicious investor in Ethernity ,it is rather strange that the SP appears at a floor of 2p which coincidentally means that Bergen , if granted 60m shares at 2p for its remaining uncalled amount under the Subscription Agreement and add the 137 m shares currently in issue gives us an enlarged issued share capital of 197 m .

So Bergen can call for 95% of its shares and remain under 30% and thereby do not have to worry about making an offer.

Why would they wait when they could grap an effective controlling stake under 30% given that you need over 75% shareholder approvals to pass resolutions at an AGM or EGM.

Bergen has a short window to decide on its move which could have significant consequences for management and shareholders.

Part of me would welcome this development as it could lead to corporate action and make our EGM strategy somewhat unnecessary.

I forgot to add that if the SP drops any further Bergen has a problem as the 30% control limit will be exceeded and may have to make a bid unless it gets a derogation / exemption from the Stock Exchange.

Tight rope walking at its most precarious and we are all stuck in the middle.

Regarding Bergen and its remaining uncalled Subscription share issue , I think there is some confusion .

At Ethernity's current market cap of £2.8m , Bergen could call the total amount of its remaining c $1.5m or £1.2m and still be under the 30% effective control limit based on the enlarged share capital.

There is no way Bergen is not going to call unless Ethernity can find someone to buy Bergen out.

They are the mouse in our soup at the moment and nobody will touch Ethernity's shares until they see out it pans out.

Escape

As well as being a venerable Chartered Accountant , a keen Astronomy and Greek and Roman history student ( night classes in Trinity College Dublin) I understand that being stoical is the best philosophy do get you through the crazy unpredictable life we all lead.

I am been at a service in St Michael's College today to pay respect to the two lovely teenagers from Dublin who died in Greece , the school my 3 lads went to.

They were from extremely wealthy families but it doesn't save you from horror and loss.

Life is a journey of love and loss and the Stoics understood this so our silly worries about Ethernity don't amount to a hill of beans when compared to the real things in life.

ATB

JT

Large shareholder view is that the Tarana 3 month deal of $1.5m is crucial as is fulfilling the Asian OEM order on time and should not be jeopardised by a vote of no confidence in management

The delivery of new licencing deals is now top priority for management , he says, in order to secure the warrants,save their jobs and reputations and the independence of the company.

A London meeting was scheduled for May but management backed when the Elephant excrement hit the wind turbine .

Maybe we can reschedule but a few of us rebels are now persona non grata in Tel Aviv.

I will await further responses from investors and revert.

ATB

LWHL

You are quite correct in saying ,that without significant shareholder support , the EGM resolutions calling for a vote of no confidence in the management and a strategic review of the company's future , would not pass.

A number of large private shareholders have been in touch with me privately to express their anger at the utter incompetence of the management and the staggering collapse in the SP as a result.

All support the call for the management to resign but a very significant shareholder ( who has asked for strict confidentiality) suggested that, this may happen soon in any event as, without any new business and the warrants not being exercised by the latest , end of October, then the company will be put up for sale and management will resign.

He suggested holding off on a disruptive EGM at this stage as management need to totally focus on the next few months or they are out of a job.

Any views?

Shareholders with over 5% of the company collectively can call on the Directors to summon an EGM .

I HAVE 2.8% SHAREHOLDING and so with a number of other like minded Shareholders we could easily call for an EGM.

Whether the resolutions to dismiss the management and call for a sale would be passed would require over 75% of Shareholders to approve it.

While this is unlikely at least we could go down with the minority shareholders fighting back and you never know getting the support of the Institutional investors.

I hate losing so much money without a battle.

Better to die with your boots on than in bed!

Bid

Fully agree

I think now is the time for all non management shareholders including us private longterm private investors and Institutional shareholders such as Miton and Bergen to act in an aggressive manner to call for an EGM and dismiss this incompetent and failed management and seek a buyer for the company.

With the damning but lucrative ( to a profitable company) tax losses forward of over £35m , the Patents and IP plus the Tarana and Asian contracts , it may be an attractive proposition to a well run Semiconductor rival.

The buyout price surely must be higher than 2p a share .

I don't think this useless Israeli management team should be allowed to continue in office any longer.

I will do my best to try to organise a shareholders group to push for this in the coming weeks.

Enough is enough

Time for shareholders to fight back against these individuals who have destroyed shareholder value on an epic scale with false/ misleading pronouncements both in public and private.

They must not be allowed to run our company for any longer.

Disgraceful

Mascarosergi

I know you will enjoy immensely the Schadenfreude if Ethernity goes tits up.

Mascarosergi

You may be correct again

We will know very soon

Mascarosergi,

Given our respective histories regarding Ethernity, I would trust your cash estimates more than mine.

The 2022 financial statements read like a bucket of vomit and appear to be a massive clean up exercise of all the garbage accumulated over the past few years.

Ethernity is now a trimmed down tiny Semiconductor operation with some interesting technologies as evidenced by the Tarana order and that company's continued support together with the Asian OEM where the potential for further orders is good.

The move to a licencing model particularly for its developed PON products and the slashing of costs commensurate with the size of the business is belated but non the less welcomed.

If you view the company as semi start up business in an exciting space and a market cap of just c£3m , there is a reasonable investment case to be made.

The key for this tarnished management team is to secure new licence deals, get the warrants cash in much pronto and deal with the Bergen conundrum.

If they can do all of these things then those buying in now could be highly rewarded and LTHs may recover some of their investment.

Management has run out of road so it must deliver very soon.

Skid

Reading through the 2022 financial statements , it is clear that Ethernity has incorporated the exercise of the warrants into its cash forecasts for the year.

So it has a very short window to get the SP up to 7.5p to crystallise the 6p warrants.

The key is to announce some new licencing contracts and to stop Bergen from calling the c$1.5m worth of unissued shares before early September.

They can perhaps extend the Subscription Agreement share exercise date to the end of 2023 , hopefully convincing Bergen that it is in its best interests to do so which may be tricky.

I assume Bergen doesn't want a major controlling interest in Ethernity now at a share price of 2p so it has a problem which hopefully Ethernity can sort out.

I have been accused on the other Board of being utterly wrong on Ethernity's new strategy of licencing its technologies.

The current major products the PON OLT and related systems are developed and activated within the Chinese OEM contract.

Future sales of these products will be licensed to OEMs.

If anyone is stupid enough to think that Ethernity has the financial resources to fund £ms of components for similar deals given its cash constraints is not in the real world .

The Chinese contract has been torture for Ethernity with the need to forward buy components at higher prices to satisfy future deliveries where the risk is that from the OEMs side its customers could delay takeup as happened with other Ethernity contracts.

The gross margin has suffered with the increased cost of components which remain in stock until the OEM decides to call for delivery.

The SoC wireless business with Tarana and perhaps other US WISP operators is much easier to deliver as it is software based.

The UEP 2025 and the UEP bonded products are nearing commercialisation after testing with customers and here again Ethernity should and will negotiate licencing deals.

The one lesson learnt by Levi and Co is that hubris and arrogance about your groundbreaking tech doesn't amount to a hill of beans if you haven't got the the financial/ marketing / balance sheet/ market cap of your competitors and with Ethernity in a lifeboat with no cash , share price of 2p and a market cap valuation of a small pub in Ireland they have wisely gone back to the licensing model.

If they generate licensing deals , cut overheads and deliver real cash revenues this year and next they may be a candidate for a takeover by a larger player at a reasonable valuation given its huge tax losses, IP and Patents.

Stick with this strategy and shareholders may get a return albeit not long term holders but much more than 2/3p

Still hope imho

Wildbunch

Cheers

Wild bunch

Positive vibes I assume.

120712

Well on a brighter note we could all have been looking at liquidation today without the Tarana contract which ,I suppose you must give some credit to management for.

Once there is life there is hope and Ethernity can still succeed if everything goes in their favour in the coming months.

Like us poor long-suffering shareholders, maybe Ethernity and Levi are due a bit of good fortune at long last.

Hope springs eternal .

In tandem with a determined focus on licence revenues and serious cost cutting, Ethernity should actively examine a sale of the business or at least a strategic partnership with a larger Semiconductor company to extract some value for shareholders.

It should examine all options during the critical 6 months ahead to ensure it never again faces an extinction event like experienced in the past weeks.

It is the fiduciary duty of all Directors and particularly the Chairman and Non Executive Directors to act in the best interests of shareholders and not just give blind loyalty to Levi and his management team who have failed abysmally.

In any other business the management team would have been fired a long time ago.

Blaming the World's financial conditions for their failure is derisory given the booming investment in 5G /AI , massive US Government subsidies amounting to hundreds of $billions in broadband and Semiconductor technologies, Nasdaq out of the bear market and rising again and most other small Semiconductor companies recovering rapidly worldwide.

Maybe Levi's morose and downbeat statement in the AR is a good thing and may herald a new determination to under promise and over deliver in stark contrast to previous years statements which continually alluded to Nirvana being just over the next hill.

Time for this Board and management to take their responsibilities to shareholders and other stakeholders seriously and deliver.

Woe to poor us in Ethernity in this tough world is a sentiment of losers.

After another in a never ending series of horrific financial results, the threat of extinction has been postponed thanks to Tarana.

The losses forward for tax purposes of over £40m may be appetising to a predator together with the IP and Patents.

After allowing Levi run amok with notions of being a player in the Semiconductor industry, the Board appear to have reined him in and Ethernity has now returned to being a small tech incubator business selling licences for a fee for some of its more interesting IP and tech.

The days of wasting £millions on R&D and then months /years of trialling the products with International OEMs for little or no reward are over and cash is now the priority.

If it can start generating real cash revenues of c $8/9m for this year , it may have a chance but they will never get another penny from the UK stock market apart from warrants perhaps , so finally time for Ethernity to act like a proper business and make profits and survive on its own two feet.

Ethernity has 6 months to live or die imho.

Remember the Alora group via its subsidiary Avion has in effect paid a quasi upfront payment of $25m to Immupharma by funding the Lupuzor phase 2/3 trials.

It has also incurred sizeable costs in preparing the detailed submissions to the FDA both in cash and in its management/scientific teams time.

Given that the US market for Lupus drugs represents c 60% of the world's total expenditure, then it is quite conceivable that Immupharma may negotiate an upfront payment of say $10 m plus for the rest of the world rights in addition to milestone payments , royalties and revenue sharing as per the Alora deal.

Alora ( not Avion as Tim erroneously said in the interview)has also invested over a £1m in Immupharma as c11p.

So a rest of the world deal could totally obviate the need for additional funding in Immupharma not to mention any deal on the world rights to the CIPD drug therapies.

Immupharma has enough funding to get them through these negotiations which if successful could rocket the SP even before the Lupuzor / CIPD trials start.

All to play for imho

Joe

Thank you for sharing Mark's reply.

Appreciate it.