Ethernity Networks Raises £88,750 Through Discounted Placing
Why we think this is bad
The significant 17% discount at which Ethernity Networks is raising £88,750 through a placing of new shares is a concerning sign, indicating low investor appetite and potentially a last resort funding measure. The dilution to existing shareholders is substantial, and the company faces ongoing funding risks and the potential for further dilution. This raises questions about the company's financial health and the market's confidence in its prospects.
Key Points
- Ethernity Networks raises £88,750 through a placing of 177,500,000 new shares at 0.05p per share
- The placing price represents a 17% discount to the previous closing price of 0.063p per share
- The funds will be used to provide additional working capital and repay creditors
- The company will need to seek additional share authorities to raise further funds, indicating ongoing funding risks
Summary
Ethernity Networks Ltd. has raised £88,750 through the issue of 177,500,000 new ordinary shares at a price of 0.05p per share, representing a 17% discount to the previous closing price. The funds will be used to provide additional working capital and repay creditors. However, the significant discount at which the placing is being conducted, combined with the potential for further funding needs and dilution, suggests a negative outlook for the company.