27th Sep 2021 09:16
(Alliance News) - Israel-based Ethernity Networks Ltd on Monday launched placing and subscription to raise GBP4.2 million.
The network processing technology company said it will issue of 12.0 million new shares at a price of 35 pence each. The issue price represents a discount of 35% to the closing price on Friday last week. The new shares to be issued represent 18% of the company's enlarged share capital.
Ethernity Networks shares were trading 32% lower in London on Monday at 36.50p each, giving it a market capitalisation of GBP29.7 million.
Investors will receive warrants on a one for one basis, exercisable at 60p, when the share price reaches 80p for five consecutive days.
The company said net proceeds of GBP3.9 million will strengthen the balance sheet, to allow Ethernity to support the growing number of engagements for its 5G offering towards field deployments, and for general working capital purposes.
Ethernity Chief Executive David Levi is participating for 253,431 new shares via the subscription in support of the fundraising, the company noted.
Arden Partners PLC and Peterhouse Capital Ltd are acting as placing agents to the placing.
By Evelina Grecenko; [email protected]
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