Total Funding Inflows of over $5.4m since December 2020
Ethernity Networks plc (LON:ENET), a leading supplier of data processing offload solutions on programmable FPGA (field programmable gate array) hardware for accelerating telco/cloud networks, has announced total funding inflows of over $5.4m since the beginning of December 2020 to date. The outlook for 2021 FY remains unchanged.
a. Since early December 2020, the Company has received total funding inflows of over $5.4m, through the support of the 5G Innovation Leaders Fund and through the exercise of warrants, including from directors.
b. The significant boost to the Company’s cash reserves has supported the planned expansion of its R&D resources in order to meet the development requirements and to achieve the anticipated revenues for 2021.
c. 2021 revenue estimates remain in line with expectations, subject to product revenues recognition being dependent on the timely supply of FPGA components, cards and appliances. Currently there is a temporary worldwide component shortage that is affecting global industry-wide customer deliverables (not exclusive to Ethernity), that the Company is overcoming through purchasing from parallel sources, until supply levels recover from the original manufactures of the components
Exercise of Warrants and Directors Dealings
The Company announces that it has received notices to exercise warrants, at 30p per share (“30p Warrants”), to subscribe for a total of 979,168 new ordinary shares of NIS 0.001 each in the Company (“Ordinary Shares”), including exercises by David Levi, CEO (666,667 30p Warrants) and Shavit Baruch, Executive Director (166,667 30p Warrants). In addition, on 30 April 2021 each of David Levi and Shavit Baruch disposed of certain Ordinary Shares in order to fund costs associated with the exercise of their 30p Warrants, as detailed below.
|Name||Shares Sold||Price per Ordinary Share||Warrants Exercised||Resultant Ordinary Share holding||Percentage of enlarged issued share capital|
Following these exercises, the Directors have exercised all of their warrants and a total of 427,085 30p Warrants pertaining to shareholders other than Directors remain issued and unexercised.
Ethernity Networks CEO David Levi said: “Our continued growth in engagements and outreach is extremely encouraging along with the continued increase in recognition of our offerings by the market leaders. Our unique and innovative solutions are now starting to penetrate into the major market players who have seen the need for our technology. I remain extremely encouraged by the progress and while there remains an immense amount of hard work ahead, I can finally see the vision starting to become a market reality. The support from our shareholders and founders has underscored our confidence in the Company and positioned our resources to deliver our offerings.”