Ethernity raising £4.2m to support 'growing' 5G offer

The AIM-traded firm said the funds were being raised via a placing and subscription through the issue of 12,000,001 new shares at 35p each.

It said its chief executive officer David Levi was participating for 253,431 new shares via the subscription, in support of the fundraising.

Investors would also receive warrants on a one-for-one basis, exercisable at 60p, with an “accelerator clause” when the share price reached 80p for five consecutive days.

A broker option would make available a further £0.25m to existing shareholders via Peterhouse.

“The net proceeds of approximately £3.94m will strengthen the balance sheet, to allow the company to support the growing number of engagements for its 5G offering towards successful field deployments, and for general working capital purposes,” the board said in its statement.

It said the admission of the new shares was expected on or around 4 October.

At the close on Monday, shares in Ethernity Networks were down 29.91% at 37.5p.