Ethernity Networks Ltd (AIM:ENET, OTCQB:ENETF), the virtual telecom system hardware manufacturer, has raised £1.55mln through a placing and said it is possible revenues might treble next year.
David Levi, chief executive and founder, is putting in £212,000 through the placing, which is priced at 7p per share plus a warrant, with R&D director Shavit Baruch chipping in £47,000.
Levi added that the money would be used to take advantage of opportunities arising from component shortages "to leverage our data processing SoC technology and IP, as well as our PON semiconductor technology".
In a trading update alongside the placing, Ethernity added it expects revenues in 2022 to be not less than US$2.9mln or 10% above 2021, with a further US$600,000 of sales pushed into 2023 due to customer delays and component shortages.
During the year, the company signed additional contracts in the US and China, while on-chip sales rose by 200%.
Based on this and other contracts under discussion, Ethernity added that "revenues of US$9mln for 2023 are achievable", but added it is going to focus only on orders than produce revenue in the short and medium term.
In view of that, Ethernity added it is assessing one contract in India announced in September 2020 that has experienced repeated delays.