Ethernity Networks Ltd (LON:ENET), a leading supplier of networking processing technology ported on FPGA (field programmable gate array) for virtualised networking appliances, has referred to the share subscription deed that was previously announced to the market on 25 September 2020.
Pursuant to the share subscription deed, 5G Innovation Leaders Fund LLC was committed to make the third and fourth tranche investments thereunder of £400,000 each for new ordinary NIS 0.001 shares valued at £438,000 each, no later than twelve months and eighteen months, respectively, after the date of 5G Fund’s initial investment in October 2020. However, given the recent progress by Ethernity in executing its growth plans, Ethernity and 5G Fund have agreed to accelerate those investments to make the third tranche investment in the next five business days and to make the fourth tranche investment in the coming four months. Further, as detailed in the 25 September 2020 announcement, additional investments of £1,500,000 in the aggregate for Shares valued at £1,647,000 may be funded by the 5G Fund prior to the second anniversary of the fourth tranche.
New Shares in relation to the third tranche investment will be issued, at 5G Fund’s request, pursuant to the terms of the Agreement and application(s) to trading on AIM will be made as appropriate. Such Shares will only be issued to the extent that the Company has corporate authority to do so.
The proceeds from this third tranche investment will be used by the Company for general corporate and working capital purposes.