Placing to raise £230,000
Ethernity Networks Limited announced a placing of 5,750,000,000 new ordinary shares at £0.00004 per share, raising £230,000 before expenses, which brings the total raised from recent placings to £597,500. Participants in this placing will receive one warrant for every share subscribed, exercisable at £0.00004 for 12 months, with an acceleration clause if the share price reaches £0.006 for five consecutive days. The net proceeds will be used for general working capital and to accelerate the development of the Company's 400Gbps Traffic Manager Engine, as well as to supplement resources for a Tier-1 U.S. defense customer and other programs. The placing price represents a 21.5% discount to the previous day's closing mid-market price. Following admission of the new shares, the Company's enlarged issued share capital will be 24,969,328,493 ordinary shares.
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The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
Ethernity Networks Limited
("Ethernity" or the "Company")
Placing
Ethernity Networks Limited (AIM: ENET.L; OTCMKTS: ENETF), a leading supplier of data processing and PON semiconductor technology for networking appliances, is pleased to announce a proposed placing of 5,750,000,000 new ordinary shares of no par value ("Placing Shares") at an issue price of £0.00004 (0.004p) per share (the "Placing Price") to raise £230,000 (approximately US$315,000) before expenses (the "Placing").
This Placing is in addition to the £367,500 fundraising announced on 2 February 2026 (the "2 February Placing"), bringing the total gross proceeds from both recent placings to £597,500 before expenses.
The Placing has been conducted on the same terms as the 2 February Placing. As a result, it is intended that participants in the Placing will receive one warrant for every Placing Share subscribed for, exercisable at the Placing Price for a period of 12 months from the date of grant (the "Warrants"), with an acceleration clause that would be triggered should the Company's share price reach 0.006 pence.
The grant of the Warrants is conditional on the passing of resolutions at the Company's upcoming extraordinary general meeting ("EGM"), being held on 18 March 2026, to seek approval for an increase in the Company's authorities to issue and allot new ordinary shares of no par value ("Ordinary Shares").
The Placing is being undertaken by ALBR Capital Limited ("AlbR").
Use of Proceeds
The net proceeds will, together with the proceeds of the 2 February Placing, be utilised for general working capital purposes and to accelerate development of the Company's next-generation 400Gbps Traffic Manager Engine, with additional resources supplementing those already allocated to the expanded engagement in place with the Company's Tier-1 U.S. defense customer and other current customer programmes.
Details of the Placing
The Company has conditionally raised £230,000 (before expenses) through the issue of 5,750,000,000 Placing Shares at the Placing Price of 0.004 pence per share, utilising the Company's existing authorities to issue new Ordinary Shares on a non-pre-emptive basis.
The Placing Price represents a 21.5% discount to the closing mid-market price of an Ordinary Share on 18 February 2026.
Warrants
Conditional on the passing of the relevant resolutions at the EGM, participants in this Placing will be issued on Warrant for each Placing Share subscribed for, resulting in the issue of 5,750,000,000 Warrants. These are in addition to the 9,187,500,000 warrants over Ordinary Shares issued in connection with the 2 February Placing. The Warrants will be exercisable at 0.004p for a period of 12 months from the date of grant. They will not be transferable and will not be traded on an exchange.
The Warrants will contain an acceleration clause enabling the Company to serve notice ("Notice") if the closing mid-market share price trades at 0.006p or more for five consecutive trading days. In the event the Company serves Notice, any Warrants not exercised within seven calendar days of such Notice will lapse.
If exercised in full, the Warrants would provide an additional £230,000 of gross proceeds to the Company and, should the proposed warrants to be issued in connection with the 2 February Placing also be exercised in full, together the exercise of warrants issued for the two placings would generate a total of £597,500 (approximately US$815,000) of gross proceeds for the Company.
Admission to Trading
Application will be made for the 5,750,000,000 Placing Shares to be admitted to trading on AIM ("Admission"). Admission is expected to occur at 8.00 a.m. on or around 25 February 2026.
Total Voting Rights
Following Admission, the Company's enlarged issued share capital will comprise 24,969,328,493 Ordinary Shares. The Company holds no shares in treasury. This figure may be used by shareholders for the purposes of the FCA's Disclosure Guidance and Transparency Rules.
David Levi, Chief Executive Officer, commented: "Following the successful fundraising announced on 2 February 2026, the directors have agreed to accept additional funding to further support the Company's recovery and growth plans. This incremental Placing strengthens our ability to accelerate development of our next-generation 400Gbps Traffic Manager, which is expected to further support the Company's growth."
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.