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Ethernity Networks Ltd - Airport City, Israel-based supplier of data processing semiconductor technology for networking appliances - Announces application to court in Tel Aviv for a temporary suspension of proceedings order and to convene a meeting of creditors. Also announces temporary suspension of shares from trading on AIM, effective Thursday. Says it has faced significant challenges in recent months, including ‘a significant and unexpected increase in cost and lead-times’ of essential components, following a global shortage caused by Covid-19. Several customers also have experienced pandemic-related financial difficulties, making it harder for Ethernity to collect outstanding debts. Ethernity also believes two long-term customers have been violating usage of a licence ‘for several years’ and says it ‘will be taking steps to claim against this infringement’. Says its current cash balance is approximately $107,000. Chief Executive Officer David Levi says the TSP, if granted, ‘will allow the company time to resolve issues with creditors and complete the restructuring of the business and implementation of our revised business model that focus on short-term cash generation. If we are unsuccessful, this will preserve the most value for shareholders and allow us to seek a buyer or other solution for the business.’ Current stock price: suspended in London, last traded at 0.78 pence on Thursday 12-month change: down 93% Copyright 2023 Alliance News Ltd. All Rights Reserved.
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