Ethernity Networks Ltd Update re TSP, lifting of suspension and subs. agt (2714Q)
October 16 2023 - 10:00AM
UK Regulatory
TIDMENET
RNS Number : 2714Q
Ethernity Networks Ltd
16 October 2023
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.
16 October 2023
ETHERNITY NETWORKS LTD
("Ethernity" or the "Company" or the "Group")
Update re Temporary Suspension of Proceedings application
Restoration of trading on AIM
Update on Share Subscription Agreement
Further to the Company's announcement on 12 October 2023 (the
"Announcement"), 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, announces that the court in Lod
has granted the Company with a 21-day Temporary Suspension of
Proceedings ("TSP") order (the "TSP Order"). A settlement manager
has been appointed by the court to review the Company's short-term
budget and is expected to provide his initial report to the court
within 10 days, as part of the process to determine whether the
extended period for the TSP Order (as detailed in the Announcement)
will be approved. There can be no guarantee that the court will
approve the extended period.
During the TSP, the Company's creditors from prior to the date
of the application (being 12 October 2023), will not be paid during
the process. Any possible payment would be dictated by the
settlement manager and after negotiation with the creditor group.
Creditors arising subsequent to the date of the application as a
result of the ongoing operations of the Company will be accounted
for and paid in line with the budget prepared for the settlement
manager and subject to the settlement manager's approval.
Restoration of trading on AIM
Following receipt of the 21-day TSP Order, the temporary
suspension of the Company's ordinary shares from trading on AIM has
been lifted and trading in the ordinary shares on AIM has
resumed.
Update on Share Subscription Agreement
On 13 October 2023, the Company received a demand letter on
behalf of 5G Innovation Leaders Fund ("Investor") in respect of the
Share Subscription Agreement ("Subscription Agreement"), details of
which were announced on 25 February 2022. The demand letter
notified the Company of an event of default under the Subscription
Agreement resulting from, inter alia, the application for the TSP
Order, and requested immediate repayment of the US$1,336,000
outstanding under the Subscription Agreement. This amount will be
handled by the settlement manager alongside the Company's other
pre-existing creditors and further announcements will be made in
due course.
For further information, please contact:
Ethernity Networks Ltd Tel: +972 8 915 0392
David Levi, Chief Executive Officer
Allenby Capital Limited (Nominated Adviser Tel: +44 (0)20 3328
and Joint Broker) 5656
James Reeve / Piers Shimwell (Corporate
Finance)
Amrit Nahal / Stefano Aquilino (Sales
and Corporate Broking)
Peterhouse Capital Limited (Joint Broker) Tel: +44 (0)20 7562
0930
Lucy Williams / Duncan Vasey / Eran Zucker
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END
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