Ethernity Networks Faces Critical Shareholder Vote in Fight for Financial Survival

Ethernity Networks, a heavyweight data processing semiconductor technology supplier, recently reported a mixed result at an Extraordinary General Meeting. With 67% of total votes in favour, the proposal to increase the firm’s authorised share capital to NIS 6,400,000 was adopted. However, plans to disapply pre-emption rights on an equity issue for cash did not secure the necessary 75% majority approval, casting a cloud of uncertainty over the company’s future.

Having previously voiced their intention to disapply pre-emption rights on equity issues to amass additional funding, the company is left in a precarious position. No longer able to cater to settling its obligations by the end of April under the creditor settlement plan, its options are running thin. Unless the company manages to acquire additional funds before the end of April, its continuity as a going concern is in jeopardy.