By Anthony O. Goriainoff
Shares in Ethernity Networks fell after it said it has agreed a settlement with 5G Innovation Leaders Fund that includes terminating a subscription agreement, issuing a number of shares and extinguishing its liability to the company.
Shares at 0834 GMT were down 0.58 pence, or 23%, at 1.88 pence.
The London-listed Israel-based provider of data-processing products said Friday that in reference to a share-subscription agreement from February 2022, 5G will be issued up to a maximum of 150 million new ordinary shares. Under the deal, 5G can’t hold a stake of more than 24.99% in the company.
Ethernity Networks said it had issued and allotted an initial 44.9 million ordinary shares in a first tranche, and will issue a further 43.6 million ordinary shares on receipt of a notice from the company.
It added that–subject to receiving shareholder approval–it will issue a further 61.5 million new ordinary shares to 5G.
Ethernity said that should it not receive shareholder approval at a general meeting, it would have an outstanding debt of $600,000.
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