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Caught offside with their pants down.

I agree. They seem to be doing everything to encourage the share price to rise. Now if they are expecting a placing below 40p then why buy at 40p now.
8 million at 50p is my guess however I think that it's the last resort as free money from the Israeli government must be the first port of call.

Excellent. After the disclosure yesterday. Anybody think that he won't take part in a fundraising?

120k buys 11k sells.
I suspect that the MMs thought that they would pick up some cheap shares to offset the the shares they have sold into the market. Massive fail.

Yes but for how long they don't have shareholder approval until the EGM. The Israeli government assistance won't be decided for a month. They said that a placing is if that is unsuccessful.
Also the company are now actively encouraging the share price with information.

40000 buys against 11000 sells. Since news 120000 buys against 50000 sells and a 13% drop in the share price. I know that the numbers are small but this situation is not new, there is already a huge deficit. So what are we not being told.

Those that buy then sell simply cancel themselves out. It doesn't help the MMs balance. Many institutions won't buy on the market no matter the price but will maintain their percentage in a placing. I feel for them at 130p, if they have funds it makes sense at 40-50p if they get the chance.

I am wondering how long the MMs can play this. The now established average is 3 buys to 1 sell. Even yesterday with the drop 2:1 so how long can they supply and what happens when they run out. Certainly they are not having any of my personal shares or any of the other portfolios I control.
I think that they need a substantial seller to continue this.

That's what we need. I did buy a very small chunk. I am buying 3-5 small chunks a week at the moment.

I certainly took it that Covid-19 has had impact on the market. Certainly the push for 5g and remote working will hasten the need. I think many are not ready to respond and turnkey solutions will be used more.

Interesting analysing the information supplied.
On April 2nd announced delivery of a order for ACE-NIC50 cards to the Chinese company for their internal 5g. Yesterday they talk of a roll-out of up to 2,000 FPGA SmartNIC cards during 2021 at unit prices ranging from $2k to $3k. Clearly separate and different contracts.
In addition we have "large Chinese OEM who are building their 5G UPF offering based on the Ethernity ACENIC-100 FPGA Smart NIC" and "new OEM was initiated following completion of testing by the Chinese company, which plans to port Ethernity's software and firmware onto its own FPGA-based NIC hardware."
Again two very different scenarios. Either that OEM has ditched its own fpga or it is a different OEM and contract.
The unit price for using the software/firmware cannot be $2000 - 3000.
Another unknown is does the $1. 5m of 31st March include the fee for the ACE-NIC50 card delivery.

I think that I continue to view any dips as buying opportunities.

It seems to me that a placing is a backstop position still. Given that they may have about $1.6-2m currently and have reduced costs. They also are negotiating a design contract with a milestone payment upon contract of a unknown amount. They have about $2m income in the next 12 months then beyond it ramps up considerably.

"In the absence of receiving the Innovation Authority grant, it is likely the Company will need to seek access to alternative funding in order to trade to its current plan and maximise its ability to secure contracts and conclude negotiations on terms favourable to the Company"
The result of the grant application is another month. The company will in the meantime plan to go forward as if the grant was not available. The way it is written suggests that it is dependent on the grant or not if there are other funding requirements. On that basis the grant will need to be substantial $3-5m.
I don't think that anything is off the table at the moment.

I assume that the $1.5m as of 31 March is plus either $495000 or £495000 depending where you look.

Milestone revenue from that contract would obviously be quite useful. It looks like 2021 revenue will be substantial based upon what we know already.
Personally I suspect that there will be no issue raising funds from peers in Israel. I would be very interested in taking part in a placing but I don't care if I don't get the chance. If I were holding at 130p+ I would be very unhappy now.
The Directors have taken a substantial pay cut, clearly they don't want a prostitutional placing however from 130 even 50p would be a shame. I fully expect them to maintain their holdings. I think that they will place for $5m. Any less and the brokers won't be interested. Hopefully some will help with liquidity.
I am way more confident now than before, I will be taking more tomorrow.

I doubt very much that any of the money will come from the UK. They are simply listed there.
I don't anticipate that they will be desperate to fill any placing if there is one. Lots of other options.

So twice as many buys as sells. I don't really understand how this is working.

Is this the first time that the company has ever volunteered some unit price and size info.
It's the first time I can recall them appearing to encourage the share price

Yes $4-6m a very good deal and it just shows what one chunky contract can produce. A commercial rollout could involve 100000+ units.
That's how I think Ethernity will be bought out.

So what's the deal with the share price. The RNS attracted buying, thanks for the opportunity. I can only assume that a huge sell lurks somewhere

They haven't even started on the idea of a placing yet. If they wanted to get it done cheap they wouldn't have provided the update.