Ethernity Networks gains approval to issue equity

Published 29/04/2025, 10:30
Ethernity Networks gains approval to issue equity

LONDON - Ethernity Networks Limited (AIM:ENET.L) (OTCMKTS:ENETF), a key player in data processing technology for network appliances, announced the successful passage of a special resolution at its Extraordinary General Meeting (EGM) held on Tuesday. The resolution, which received 89.19% support from voting participants, allows the company’s directors to issue equity for cash without offering pre-emptive rights to existing shareholders.

This approval is a strategic move by Ethernity to secure additional funding necessary for meeting its obligations under a creditor settlement plan and to further develop its potential application-specific integrated circuit (ASIC) business. The resolution passed with a significant majority, exceeding the required 75% threshold.

In addition to the EGM’s outcome, Ethernity has been granted a six-month extension by the Settlement Manager for its creditor payments, which were initially due by the end of April. This extension is contingent on final court approval. If the court confirms the extension, Ethernity will have until the end of October 2025 to fulfill its financial commitments as outlined in the creditor settlement plan. However, the company has expressed its intention to raise the necessary funds and settle the outstanding balance as soon as practicable.

The decision to issue equity for cash and the subsequent extension are part of Ethernity’s broader financial strategy to manage its debt obligations while continuing to invest in its core technology offerings. This news is based on a press release statement from Ethernity Networks Limited.

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