Member Info for dallo

Thanks 01234
Great news on Kape another of my big punts.
Need the same from Ethernity
I have a feeling we will get some news very soon.

There is a funny Woody Allen joke about two Jewish older matrons in New York .
One says to the other "why don't you sell your big brownstone house in Manhattan and go live in Florida and play golf and enjoy your golden years".
The other matron says "we are waiting for the children to die before we move"
The moral of the story is your children will always be your biggest worry and the love of your life.

Apologies to Greg the Grinch for using the word "idiotic" in reference to his post suggesting that 5G had some inside info and that ENET should have not taken the funds at this SP level before warrants were exercised and therefore avoid unnecessary dilution.
The point I was making was that dilution will only take place when shares are issued to 5G under the prepayment agreement .
He will be correct if ENET issue the shares at the current SP but I don't think this will happen.
Also suggesting management had given 5G some inside information is inappropriate language in a post
I also posed a rhetorical question whether it makes any difference if the SP was 40p and 5G get it's shares at 50p.
I think that price of 50p would be still too dilutive
so hopefully the 5G shares will be issued at a higher SP.
Next big news is the appointment of the new Chairman maybe accompanied with a results / corporate update.
It may arrive next week imho
DYOR

Apologies to Greg the Grinch for using the word "idiotic" in reference to his post suggesting that 5G had some inside info and that ENET should have not taken the funds at this SP level before warrants were exercised and therefore avoid unnecessary dilution.
The point I was making was that dilution will only take place when shares are issued to 5G under the prepayment agreement .
He will be correct if ENET issue the shares at the current SP but I don't think this will happen.
Also suggesting management had given 5G some inside information is inappropriate language in a post
I also posed a rhetorical question whether it makes any difference if the SP was 40p and 5G get it's shares at 50p.
I think that price of 50p would be still too dilutive
so hopefully the 5G shares will be issued at a higher SP.
Next big news is the appointment of the new Chairman maybe accompanied with a results / corporate update.
It may arrive next week imho
DYOR

Fairview
I have a son who lives in Florida who bought his first share a year in a cannabis company based in Florida because he saw how popular and full the stores were every day.
The shares jumped 4 times and has a market cap of $3billion...
15 times estimated Revenues and still loss making.
He now knows everything about the market......sadly he will learn in time.
There are even crazier valuations for small 5G companies on Nasdaq but there you are!

Uhlf
Probably not a like for like comparison with late stage pharma drug trials but the ENET trials are very important for the future of the company but not as terminal as a failed Phase 3 .
drug trial I must admit.
However now that ENET has announced these product trials the market will be keenly awaiting the outcome of same.

Kit low
View Ethernity as you would a small Pharma whose drugs are in late stage clinical trials.
The testers are checking for efficacy and comparatives against existing drugs( replace with ENET products in trial).
As with Phase 3 clinical trials with Pharmas the market will explode on successful outcome of ENET products currently in trials.
However the converse is true also insofar as the SP will tank if trials fail or are unsuccessful .

Uhlf
I was not referring to you just the post from Advn
All shareholders are "inside" even new investors
like 5G .
Ethernity when signing the Subscription Agreement cannot have given 5G any market inside information so 5G knew the risks and rewards but management did not want to give away the whole shop for buttons hence the prepayment structure.
Of course Ethernity is cash contrained and needs to go cash positive soon otherwise it will be bought out.
That's why next 6 months are critical and I expect management to deliver.
If not I think someone else will
No offence meant to you just response to ADVFN post.

Insider trading is an offence and those who have received insider information that is market sensitive are liable to prosecution.
Management and Directors and connected parties are deemed insiders and cannot trade within closed periods.
Imparting inside information to 3rd parties or individual investors is a criminal offence.
Mark is a Chartered Accountant like myself and is above reproach so idiotic statements about insider trading are very dangerous and potentially libelous .

The post from Greg the Grinch is idiotic and typical of uninformed investors.
Ethernity DID NOT issue shares to 5G at c33p today and totally dilute the shareholders.
Would it matter if 5G put the cash in at a SP of 40p with a future drawdown at 50p.
Until we see what 5G do we should be sanguine .
Ethernite needs funds now to drive forward and I am confident with the warrants and 5G cash it will be cash flow positive in H2.
DYOR

5G is investing another £800,000 into the company and obviously believes in the investment case.
The key issue is what amount of shares will it get for its investment
Unless management has not got an ace up its sleeve it will be at current SP levels which will be dilutive and will require 5G to issue a holding RNS
having over 3% plus .
I don't expect this to happen .
Imho
DYOR

There is no holding RNS from 5G because it hasn't been issued with the shares as yet so no dilution until they are.
That is the point of the Subscription Agreement and imho the reason why the shares will be issued at higher SP to avoid undue dilution
They have no insider knowledge but maybe 5G feel more confident about the company's prospects and has moved accordingly.

Yes agreed.
Imagine trying to sell 250,000 in this market.
Might get them away at 25p.
The corollary of this situation is that if big news hits the SP could double in an instant.

Uhlf
It had to be structured in management's favour to allow Levi to build market and product visibility and demonstrate growing revenues without giving the whole company away for peanuts.
For example if 5G chucked the full £3.2m in one tranche last September they would have ended up with c45% of the shares when Market Cap was under £7m.
So management and staff have participated in the Placing and do not want to see their shareholdings diluted unduly and hence have a vested interest in a much higher SP in the very near term.
The clock is ticking.

Another very important issue in the event of 5G receiving it's full amount of shares at the current SP is the massive overhang of stock held by a 22% plus shareholder ( my calculations of potential % holding by 5G ignore any amounts still held from the original c820k share allocation)
So if management is smart it will avoid such a situation arising and the only way to do this is to drive the SP much higher through significant deal/ revenue newsflow.
Everyone here knows this and so does Ethernity management imho.
DYOR

Uhlf
This type of Subscription Agreement involving a prepayment option and future share drawdowns at an unknown share price is difficult to analyse without seeing the full agreement.
Clearly Ethernity management as major shareholders want to reduce dilution to the very minimum. For example if 5G call the 3 amounts
under the 2nd ,3rd and 4th tranches of £438k each and balance of £107k from 1st tranche then at the current SP of 33p ,5G would be issued with c 4.3 million shares or c 10% of the then enlarged share capital.
This level of dilution is obviously unacceptable to
Levi and the team and hence the suspicion is that they are deferring the issue of shares to 5G until the SP is considerably higher.
If the final commitment of £1.5m is called from 5G and the SP has not budged then a further 5 million shares could be issued to 5G bringing it's total POTENTIAL shareholding to over 22%.
That is why I am more assured now that the SP will be much higher when 5G is issued it's shares
and satisfied that management is still exercising control over the Subscription Agreement .
Now it is up to Levi and the team to show what they are made of.
I am confident they will succeed.
IMHO
DYOR

The most imminent news should be regarding the appointment of the new Chairman.
In the RNS of the 18th February the company said that discussions were at an advanced stage and the appointment was expected to be announced in early March.
The calibre of the new Chairman will be very important and will send a strong signal to the market.
No top class player would take Chairman's role unless he/she was fully convinced of the future success of the company and the quality of its management.
Imho

Fairview
My thoughts entirely.
I have had quite a number of e-mail discussions with Mark over the past few months and he is almost paranoid about inadvertently giving out or even suggesting market sensitive information.
So I very surprised by Sergis rather open conversation with management and their ****ging off of Silicom.
Not like Levi or Reichenberg at all so maybe a fact check is required.

01234
Sadly if the SP moves dramatically higher and draws in the short term punters and gamblers the tone and decency of the posts will change.
For a year or so there has been just a few of us here encouraging and consoling each other so perhaps nothing lasts for ever.

With respect to Cambridge and his views we should welcome bearish posters if they are logical and reasoned giving counter arguments against the bullish concensus.
We all know there is no such thing as a risk free investment and Ethernity is still high risk.
However at a market cap of just £16m , exciting IP protected in part by patents in a massive growth
market with a management team with huge skin in the game it represents an excellent risk/ reward opportunity.
However there no guarantees in life or the Stock Markets and only time will tell.
The downside is possibly a takeover by a bigger player before the full potential of the company is reached imho .
However one or more major deal announcements
could transform the investment case and market perception in a flash and drive the SP to £1 or more.
A further placing can not be ruled out if funds are required to propel growth but hopefully at much higher SP levels.
I know that management remain very confident about the prospects as stated publicly and not interested in running a public company at the current market cap .
DYOR