Ethernity Networks Ltd (AIM:ENET, FRA:82N) has drummed up £4.2mln in a placing and subscription fundraising that was over-subscribed and scaled back.
The 12mln new shares will be issued at a price of 35p per share, represent approximately 17.8% of the company's issued ordinary share capital.
Every share will have a placing warrant attached, allowing them to subscribe for a further new ordinary share at a price of 60p apiece, over a term of 18 months from the date of admission. Under an ‘accelerator clause’, if the shares close above a mid-market share price of 80p over five consecutive days during the term, then the company may serve notice that the warrants must be exercised within seven days or be cancelled.
Ethernity said the net proceeds of roughly £3.94mln, a potentially an extra £0.25mln broker option for existing shareholders, will be used to strengthen the balance sheet, to support the growing number of engagements for its 5G offering towards successful field deployments, and for general working capital purposes.
“As Ethernity continues to implement its strategy of becoming a supplier of customised and differentiated system solutions, the placing will serve to position the company in a stronger position for the next stage of its development and growth,” it said.
Chief executive David Levi is subscribing for 253,431 shares.