Member Info for Tracylied

I see that Singapore telco has selected Ericsson and Nokia to deliver their 5G network by 2025. TietoEVRY and Ethernity have a joint 5G UPF product. TietoEVRY work with both on 5G projects. The joint product uses Ethernity ACEnic-100 for acceleration. ACE-NIC100's small footprint and low power dissipation makes it perfect for the task of multiple node population in the city. It will save CPU cores, power and space.
The Nordic connection makes this a very likely outcome in my opinion. Implementation will likely start 2022.

I believe that they have multiple options and won't be diluting their holding so I expect the directors to keep their percentage or advance further. If I were a partner or a client I would be knocking on their door with a deal for regional exclusivity. Freezing the competition out or forcing them to buy through them as a agent.
There are many wealthy entities in the development and supply chain. Any one of those could be investing here.
I think that if they were to announce a chunky contract unless it had a £1m cash sum attached it would rally a bit but not much. Until funding is sorted for some the risks are high. I see them as low. I don't care if they use all of those shares, they will still be rewarding in the future. My risk is offset by some more cheap shares.

One year ago David Levi spoke about the evolving FPGA market and said that he could not tell us how big it was going to be. He said in one year I will be able to tell you. It was a future market then, it still is but the vendors and service providers are now at the commitment stage. Last year Ethernity were in a unique position. They had the market leading product to deliver true 5G speed in a determinate way. He said that their product was better than Intel. It still is.
This is all about timing and the next 12 months will see mass deployment and mass sales for Ethernity.

Ties it up well. Discussed before but forgotten with the short term focus on a couple of million fundraising.
https://www.vanillaplus.com/2020/03/16/51311-growing-demand-chinese-telcos-5g-enabling-networking-system-says-ethernity/

China Mobile announced newly-built5G SPN equipment centralized procurement projects in 26 provinces from 2020 to 2021, and FiberHome won 31% shareof the bid for all 26 provinces with the first ranking in one province and the second in 25 province.
Fiberhome are opened to a huge market. The are set to exploit upstream and down stream in the creation of the 5G ecosystem.
How does this involve Ethernity? fitBNG is a joint virtual BRAS product that Fiberhome markets and sells in China and India. Fiberhome use the ACEnic-100 to accelerate their virtual gateway. Multiple units can be used with each server resulting in multiple card sales per server times millions of servers.
Why Ethernity? Simple Ethernity lead, yes there are others but remove those tied to exclusivity through acquisition of the parent company owning the tech and really there are very few. None match Ethernity performance.
So why aren't they generating millions from sales? Simply the market is still scaling up, vendors and OEMs don't have the skill set and time to hold in-house. Even Fiberhome didn't develop their own but came to Ethernity for part of the virtual BRAS solution.

Indeed. I think that we will get the funding, results and broker analysis very close together. It will be difficult to talk anything forward without funding info.

You mentioned many routes to markets and for sure we'll see more. Some will be very fruitful and others not so because like great comedy it's all in the timing. None of these deals are in a current market so can't be judged yet. The benefit of trusted local suppliers selling into local markets cannot be under estimated as Ethernity simply don't have the reach or contacts to the tier 2 vendors. The tier 1 vendors will be looking for complete solutions with huge flexibility. Ethernity have a complete suite of virtual solutions. Each is value added and can be customised very easily from Israel. Really this is the first time this industry has launched products that are not boxes full of electronics.. These are remote access and virtual devices that can be streamed to multiple devices in seconds.
What is each deal worth I haven't got a clue but when adopted the scale globally will be huge. Millions of devices for each country.

As a see it if a director owns shares they are accused of controlling if they don't they are accused of self interest without skin in the game.

No at IPO the company was notionally valued and his company was worth to him his 6m+ shares at 130p.This company had been trading for years at a profit. The valuation is what it is but on the day of float his shares were worth about £8m. Now they are not. So today they are worth £1.2m. I think on that basis I have no problem if he doubled down below 130p. Certainly if it is below market price I want £20k of that, if not I will take them on the market.
However as I said there are many different ways this can go. The lower the SP the less likely a prostitutional placing in my opinion.

Maybe I am the only one who is not even looking at the funding. There are so many possibilities that it's just not a worry to me. Do I trust David not to double his holding cheaply. No I think he may but after all he is holding at 130 so I guess that he needs a break.
I am more interested in the actual activities, I can't see why the would have bothered with Techtronics if they couldn't get a couple of million to see them through.
The military and aviation work is useful but it is nit their day job just a sideline until the main event. However I expect to see a universal avionics platform launched next year. Customisable and interoperable. That will sell well as all a currently unique and require training packages to convert. Ethernity will bring compute into the ****pit, it will make pilot less aviation common.
Meanwhile 5g looms closer and the function 5g will bring will need Ethernity kit in huge numbers. I keep saying it, you have to see what's coming to understand what David can see and the industry can see.

Yes and all the way through they stated that they would have enough cash and actually I don't think that they are far short. It's really a cash flow issue more than anything else because they have invested in developing products that are in some circumstances already sold and in others market leaders in future markets.
Really a loan would be the best way forward. They have already secured a advancement facility for collection of future payments in advance. They may or may not actually use that but it makes sense to extend that into a loan.
The reason for the placing is to allow Ethernity to negotiate good terms without requiring larger upfront payments and a lesser royalty. It may be that given the share price that it's preferable to take more cash and slim down the future royalty.

I think that it will follow quickly but clearly until the permission was in place they could not agree to anything. Certainly not wishful thinking. Given the circumstances of this company I think that they will have many options to raise funds. Both China and Israel are super environments for associated parties to negotiate some exclusivity in exchange for a loan or forward payment. Many are reliant on Ethernity simply there are very few virtual platforms and none compare to Ethernity. If I were at Fiberhome or TietoEVRY I would be looking to exploit the opportunity for regional exclusivity in exchange for a interest free loan or a plus value placing.
Interesting to see how it goes but I think that people here underestimate the value of the product Ethernity have developed and the size of the market before them. In some cases unopposed.

MMs should be happy to take those cheap shares all day long.

What's interesting for me is the RNS yesterday was a Reach so Ethernity didn't need to release it, they chose to and the timing. We have seen more use of Reach recently. Although the attempts to progress the share price has failed miserably the willingness to try is important. It demonstrates that we may see more in the future.
So the question is why now? It tells me (and I could be wrong) that there isn't about to be a placing fixed a x% of the 5 day average. Those types of deals exclude promotion to influence the share price and allow for only required release of information. The next few weeks will be interesting, we'll hear about performance until 31 December with some forward looking statements. We have pending a military contract.
I am waiting on the first core business order for a part in a 5g deployment through a third party vendor and some sales data in Korea which must by now be a maturing market.

The market solution components for white box manufacturers and solution providers. This will be tier 2 downstream and tier 1 upstream. Sales could be prototype development or large scale manufacturing. They will be representing Ethernity as a reseller so will ultimately have access to Ethernity range.

Techtronics is the second deal with exposure to India. I do like the Indian Market, huge technology challenges unreliable power and utilities. Perfect for the strengths of a low power limited space solution. Now we just need someone to come up with a bulletproof cabinet to control the environment at the edge. I am seeing some come out now power self sufficient which will make Ethernity probably the only choice for acceleration and power conservation.
The bandwidth is vast so penetration will be very poor requiring millions of installations in a Country like India.

So who is the grump with 419 shares who voted NO

It's time to look at the bigger picture if they dilute here I hope they go to someone holding at 130.

Bid I assume all res passed so they have options available if required.

All 4 on 25 see them move back if any volume appears. Just 4 MMs is the problem this share needs more liquidity.