Ethernity Networks Share Discussion Threads

[pwhite73] 19/6/2024 16:04

Yes the RNS does make it clear but its important people understand how it works and not mislead by others who think the subscription shares have nothing to do with the fundraise and the warrants. As per the RNS the warrants are only a contingency plan if Bergen cannot recuperate their outlay of £800k by the sale of the subscription shares.

[pwhite73] 19/6/2024 15:56

Note the phrase - "New Tech has been granted a contingent warrant "

Look up the meaning of contingent.

[dplewis1] 19/6/2024 15:55

I think that's harsh on Ayala.. she was pivotal in driving the name change to New Technology Capital and calling it an "investment deed". In other news following much ramping, Ethernity share price is back to levels not seen since last Tuesday

[purchaseatthetop] 19/6/2024 15:54

Looks like skid agrees with me. It is a terrible deal because they can sell for a massive profit and then get tens of millions more shares. But the alternative was a 0.3p placing and this gives a different set of outcomes.

Glad skid agrees with me. Go Team PATT snd Skid*



*only joking.

[pwhite73] 19/6/2024 15:52

patt - The 40m subscription shares are part of the gross £800k fundraise along with the warrants. The warrants are valued at £800k the same value as the fundraise in the event the price of the subscription shares collapse in value to say 0.01p. Bergen can recuperate their £800k outlay by £800k of exercisable warrants.

RNS 17/05/2024 - "In consideration of the gross Fundraise proceeds, New Tech has been granted a contingent warrant exercisable over new ordinary shares of ILS 0.001 each ("Ordinary Shares") as described below (the "Warrant"), and at Closing, the Company will issue 40,000,000 new Ordinary Shares (the "Subscription Shares") to New Tech."

That's it from me on this subject.

[lionel kipper] 19/6/2024 15:51

I bet he has better teeth though !

[skid35] 19/6/2024 15:45

Any idiot who said that the new CFO / tuck shop bookkeeper would somehow be transformative, just read the stupidity of this RNS, the ability of Bergen to continue to screw at the expense of shareholders on most market conditions etc. Seems the CFO read the same bookkeeping for dummies book.

[purchaseatthetop] 19/6/2024 15:42

PW. Read the RNS and try to understand that the “value” is not what Bergen may have sold them for. It is the newest “exercise price”. Your horse must really suffer.

[pwhite73] 19/6/2024 15:39

patt - "Bergen can sell at 40m at 3p on 10/7/24 netting themselves £1.2m.
But if the share price then drops to 0.5p a month later they can convert another £800k"

That statement from you negates this statement from the company.

"The amount available to be exercised under the Warrant is £800,000, less the value of the 40,000,000 Subscription Shares,"

If Bergen have sold and netted £1.2m by selling the subscription shares on 10/07/2024 then what do they mean by - "the Warrant is £800,000, less the value of the 40,000,000 Subscription Shares," when according you there aren't any subscription shares!!!!

You said you have a contact in the company. Ask them!

[bbmsionlypostafter mk2] 19/6/2024 15:24

Ugh. This idiot again.

Filtered.

[purchaseatthetop] 19/6/2024 15:18

And the survey said……..

YES!

[purchaseatthetop] 19/6/2024 15:10

“The exercise price will be reset on the 45th day after Closing, following which it will be calculated as the average of the lowest five daily VWAPs of an Ordinary Share during the twenty trading days before the receipt of a Warrant exercise notice by the Company, less a 15% discount.”

“The amount available to be exercised under the Warrant is £800,000, less the value of the 40,000,000 Subscription Shares, calculated by reference to the relevant exercise price, such that New Tech will be entitled to exercise the Warrant only for an amount exceeding the difference between the maximum amount of £800,000 (or a lower amount outstanding at the time following prior exercise of the Warrant) and the value of 40,000,000 Subscription Shares at the relevant exercise price.”

Bergen can sell at 40m at 3p on 10/7/24 netting themselves £1.2m.
But if the share price then drops to 0.5p a month later they can convert another £800k less (40m *0.5p) which is £600k of warrants. The fact they have made £1.2m on the actual 40m subscription shares makes no difference.

But then you do invest in graphene nonsense so you probably don’t understand it. I wouldn’t want to be your horse.

[pwhite73] 19/6/2024 14:52

patt - "The first part is right. The second part is wrong. It does not matter at what price Bergen sell the 40m subscription shares."

YES IT DOES. Read the RNS again.

RNS 17/05/2024 - "The amount available to be exercised under the Warrant is £800,000, less the value of the 40,000,000 Subscription Shares..."

If Bergen sell the 40m subscriptions shares at a price of 3p next Friday after Tarana contract news netting them £1.2 million what is the value of the warrants they can exercise over the next seven months?

I'm done on this subject. You can lead a horse to water...

[realdealy] 19/6/2024 14:49

Oh dear patt you sure you understand.

[papillon] 19/6/2024 14:46

I will be well, countbasie1, when purchaseatthetop (or as one of his many aliases) changes my "Tena pants"! 🤣🤣

I do read this ENET bb now and again. I looked in last night and today after seeing the big percentage rises in the share price I hope ENET comes off for you. I have no idea whether it will.
News drives share prices, but pumpers & dumpers can as well, especially for Mkt Cap minnows like ENET. Going by the RSI the ENET share price was very oversold; the pump & dump speculators latch onto that. The ENET share price has risen up to the Upper Bollinger Band. Is that the end of the rise? I've no idea, but it will be unless a good news RNS is issued soon.
News drives share prices, not charts!

[purchaseatthetop] 19/6/2024 14:43

PW. We all know that.

What I was saying you had got wrong was this bit…

“If the share price is 2p throughout the eight month period or if Bergen sell the 40 million subscriptions shares for 2p they cannot exercise the warrants.”

The first part is right. The second part is wrong. It does not matter at what price Bergen sell the 40m subscription shares.

[countbasie1] 19/6/2024 14:31

PapsGood to hear from you.Hope you are well.

[pwhite73] 19/6/2024 14:30

patt - "The value of the 40m subscription shares is always the 15% average adjusted price."

No they are not. The subscription shares are the value of the share price on any given day. The value of the subscription shares have nothing to do with the 15% discount only the warrant conversion shares is subject to this. That's how Bergen intend to make their money. If they lend ENET £800k and get back £800k eight months later what's in it for them to take on the risk.

To take one scenario.

If the subscription shares are valued at 0.1p then 40m x 0.01p is only £40k. This means Bergen can convert £760k worth of warrants at a 15% discount netting them £114k. £760k - 15% = £114k

ENET protects its shareholders (not that they really care) from further dilution by having as high a share price as possible. If the subscription shares are at 3p then they are worth £1.2 million to Bergen. 40m x 3p = £1.2m.

Bergen then cannot convert because £800k warrants - £1.2m subscription shares = -£400k.

Speak Later

[purchaseatthetop] 19/6/2024 14:26

Papillon. Remember to change your Tena pants! Glad to help.

[papillon] 19/6/2024 14:22

I see purchaseatthetop is also posting as bbmsionlypostafter Mk2 today! One of his many aliases! 😂

ENET? Like most AIM & Standard List shares, such as BEN & BIRD, it's for gamblers only! No different from gambling on the horses. Best of luck with your bets. Gambling on ENET is like betting on a rank outsider in the Grand National. Very, very, occasionally they end up winning!

[purchaseatthetop] 19/6/2024 14:02

Yes.
So if the conversion happens when the share price is 0.8p then the amount that can be exercised is £800k less (40m * 0.8p) which is £480k. What Bergen have sold the 40m shares for previously is utterly irrelevant. The value of the 40m subscription shares is always the 15% aversge adjusted price. Not what they actually sell them for. They could have sold all 40m at 2p previously but that has zero impact on the warrsnts.

I admit it took me a while to understand it so I will be understanding.

[pwhite73] 19/6/2024 13:54

patt - "They can keep the 40m original shares or sell them at 1p or 2p snd it has no impact on how many new warrants they can convert."

Give me strength. The warrants have a total value of £800k. It is no coincidence this is also the same value as the fundraise which is also £800k. The monetary value of the exercisable warrants is determined by the value of the subscription shares. If the subscription shares are valued at £400k then Bergen can convert only £400k of warrants. If the subscription shares are valued at £800k then Bergen cannot exercise any warrants at all.

RNS 17/05/2024 - "The amount available to be exercised under the Warrant is £800,000, less the value of the 40,000,000 Subscription Shares..."

[purchaseatthetop] 19/6/2024 13:29

“If the share price is 2p throughout the eight month period or if Bergen sell the 40 million subscriptions shares for 2p they cannot exercise the warrants.”

Utterly wrong as usual. Try to understand. The 40m preallocated shares are irrelevant except for determining how many new warrants can be converted.

In mid July, say the adjusted average share price is 1.2p. Bergen have a capability of converting £800k less (40m *1.2p) warrants at 1.2p. So £320k at 1.2p. That is the max.
If they decide to convert £200k at 1.2p leaving another £120k for later they get 24m new shares. Which they can sell.
They can keep the 40m original shares or sell them at 1p or 2p snd it has no impact on how many new warrants they can convert.