Ethernity Networks Share Discussion Threads

[purchaseatthetop] 23/7/2024 11:57

There seems to be some idea that DL gave away SoCs to Tarana cheap in the $1.5m June/July 23 order. Not the case

See accounts to 30/6/23

“· Gross margin of 57.37% (H1 2022 60.83%) and an underlying gross margin of 71.2% without the non-recurring IFRS impairment.”

As $600k of the $1.4m revenue for H1 were part of this order, there is no way gross margin would have been 71.2% if that had been the case. It would have been right down. The fact the blank FPGA costs fell explains the gross margin increase.

[realdealy] 23/7/2024 11:37

I think even if tarana do place orders like the supabull seems to think, with the dilution you will find enet has to run very fast just to maintain the status quo.

[realdealy] 23/7/2024 10:52

2 Nd half now. Supposedly a raft of potential contracts highlighted to be imcomming , according to super bulls.

NOTHING YET.

[dplewis1] 23/7/2024 10:20

They probably are still involved, just for how long and for how much. Nothing so far for this year means the order from 2023 was probably arranged to keep Ethernity afloat .. another couple of million from Tarana this year will not be sufficient. Also more motivation for removing Ethernity from the supply chain since last summer.

[purchaseatthetop] 23/7/2024 10:07

In answer to the question of whether we are still involved with Tarana. I spoke and emailed Allenby after having to drag the £800k deed full details out of them by RNS that if the deal with Tarana had changed and that Ethernity were no longer involved in G1 or G2 then I would hold them as NOMAD for not updating the market. They must check.

Had a response stating that any material change to the Tarana deal as previously RNSd would be immediately updated to the market.

So, April 24 final accounts details are fully valid.

[dplewis1] 23/7/2024 08:00

Check DTR 5 in the FCA handbook. Thresholds are different for a non-U.K. issuer

[realdealy] 23/7/2024 07:53

Strategic initiatives, that's the only hope here.

Does a bigger partner with global reach fancy their IP. That has cash to further develop it without raisings?

That's the only potential saving grace here.

A new management injected by the partner into enet, or joint management.

The only way I see out of this.

[simonsmithiv] 23/7/2024 07:35

They'll engineer a rise when they want to dump and sell to pi mugs who jump on the bandwagon.

[onsideman] 23/7/2024 07:33

Surely the thresholds are determined by the rules of the exchange on which the subject company are listed?

[dplewis1] 23/7/2024 07:29

The percentage threshold for notification isn't every 1% for Bergen as they are not incorporated in the U.K. Their next threshold is 20%

[daddy warbucks] 23/7/2024 07:03

Thanks Patt. You are correct. 4 million not 40 lol.

[purchaseatthetop] 23/7/2024 06:56

DaddyW. I think you mean sell 4m not 40m!
Yes, they are selling tiny numbers. I think most of the 11m they sold was into the new contract.

[daddy warbucks] 23/7/2024 06:53

We don't know if New Tech are selling any at the moment, but volumes suggest they are very limited.They own just under 25% of the companies shares and with over 500 million in issue they would need to sell about 40 million before they needed to inform the market. ( under 24%)I am keeping a record of every days trades this time and when I have time I will calculate the VEAP .Good luck.

[socionomics] 23/7/2024 06:46

From FTC:

"The order is irrevocable, valued at $9m (£7.1m), and represents a continuation of demand for the E-band solid state power amplifier ("SSPA") modules to support the ongoing deployment of SpaceX's Starlink constellation which provides high-speed, low-latency high-speed internet to users all around the world. It is anticipated the order will be fulfilled in the current financial year."

[daddy warbucks] 23/7/2024 06:19

Morning Patt.
I can see where you are coming from, but the facts could also be interpreted differently.
New Tech offered the structured loan on the 17thMay.They we’re given an initial 40 million shares, sometime around the 23rd May as part payment.
There was an initial 45 day period where those 40 million shares would be priced at 1p a share. They could then adjust that price dependent on the lowest 5 day VWAP in the past twenty days.

So, 17th May deal done. 40 million shares issued around the 24th May.
After the 45 day period the adjustment of those shares was around the 8th July. (Approximately)
The 20 day calculated period we were all guessing started in June.
12th July, ( I think), New Tech took up their option to redeem some of the loan for another 98 million shares.
As you rightly said, sometime in the period between getting the initial 40 million shares in late May and the 12th July 11 million of the 40 million were sold.
With hindsight, I believe they needed to use those 11 million shares to affect the VWAP qualifying days, to keep it under 1p.
The surge on the 28th June (?) was due to the report of a contract for just over a million dollars. The contract has yet to be ratified ( hopefully August), but again in my opinion was a desperate effort by the company to keep the share price higher.
Unfortunately the damage had already been done as we saw when New Tech redeemed part of the loan for 98 million more shares at a price of approximately 0.41p a share.
You said that New Tech could have sold more shares on that spike. Yes they could. However, the 40 million initial share allocation is needed in the calculations for the next 5 day VWAP, so why sell more than was needed?
In fact the share price has never really recovered from that first redemption of the loan and the VWAP is likely to be similar, if not lower than the last one at 0.41p.
So New Tech could get millions more shares before news of contracts etc comes along and could hold them for that news and make a lot more money selling then than now.
People are reluctant to buy now at 0.65p, when that value could go down by a third on another New Tech redemption.
Contract news could come soon and the price should spike, but will New Tech take more shares at the same time for a much lower VWAP and sell into that spike?
I’m sorry to be a pessimist, but that was my thinking on getting out when I did at a loss I should add.
Hopefully holders will be better rewarded and I keep my fingers crossed that they get those other contracts or are bought out for their intellectual properties.

[halland75] 23/7/2024 05:51

Convict buying at 60p and recently at 0.88! 😱😱😱

Oh yes, it is all dead calm lol.
Yeah, right, if you believe that you were the ones who believed him when he said this crock would be 4p in February. 🤣🤣🤣

I did say about MATD when I got in at placement, party time there today. 🤑🤑🤑
Winners win Convict!

[realdealy] 23/7/2024 05:10

Shameful performance.
Tarana came to their rescue but not poor shareholders.

They got a free lubing.

[purchaseatthetop] 23/7/2024 04:33

12/7/24 RNS said
Holdings in Company

The Company has been informed by New Tech that, following Admission, New Tech will hold 127,378,000 Ordinary Shares, representing 24.67% of the Company's enlarged share capital.

As 17/5/24 RNS gave them 40m and they converted another 98m thry got 138m.
On 12/7/24 they still had 127m. So had sold 11m

On 28/6/24 130m shares were traded so they could have dumped hugely more than they had sold. Actually they have averaged selling 300k shares each trading day.

[realdealy] 23/7/2024 01:55

Which suggests to me bergin isn't selling more as there is no volume market ATM.

[realdealy] 22/7/2024 23:36

Some kind fella already calculated 11 m sold