Last checked at 24 Oct 2023 14:00
24 October 2023
ETHERNITY NETWORKS LTD
("Ethernity" or the "Company")
Update re subscription agreement part settlement and TVR
Ethernity Networks Ltd (AIM: ENET.L; OTCMKTS: ENETF), a leading supplier of networking processing semiconductor technology ported on field programmable gate arrays ("FPGAs") for virtualised networking appliances, provides an update on the share subscription agreement with 5G Innovation Leaders Fund LLC (the "Subscriber"), details of which were announced on 25 February 2022 (the "Subscription Agreement").
On 20 October 2023, the Company announced that the Subscriber had issued a settlement notice for $90,000 pursuant to the Subscription Agreement (the "Settlement Notice") and that application had been made for 37,125,650 new ordinary shares of NIS 0.001 each in the Company ("Ordinary Shares") to be admitted to trading on AIM and allotted to the Subscriber in satisfaction of the Settlement Notice. Having subsequently taken the advice of its UK legal counsel, the Company no longer considers that the Settlement Notice was issued validly, due to the Subscriber having notified the Company of an event of default under the Subscription Agreement (as announced on 12 October 2023).
The Company has engaged with the Subscriber to seek to come to an agreed position on the treatment of the Subscription Agreement during the Temporary Suspension of Proceedings process (as announced on 16 October 2023) and further updates will be provided in due course.
Total voting rights
The Company has withdrawn the application for admission of the 37,125,650 Ordinary Shares to trading on AIM. The Company's total issued share capital therefore remains as 149,221,091 Ordinary Shares. The Company holds no Ordinary Shares in Treasury. This figure of 149,221,091 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.
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MARKET ABUSE REGULATION
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse (amendment) (EU Exit) Regulations 2019/310 ("MAR"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.