StockMarketWire.com - Network technology group Ethernity said it would hold a shareholder meeting to seek approval to raise equity.

The company said it may need to seek access to alternative funding in light of uncertainty created by the Covid-19 crisis.

A further announcement on the timing of the extraordinary general meeting would be made in due course.

Ethernity said it had seen some recovery in China, specifically in the 5G marketplace.

It had recently signed a new design contract with a North American telecommunications equipment manufacturer, as announced on 30 April.

It had also entered contract negotiations for a new design order for a military and aerospace vendor, which may lead to initial milestone revenue followed by recurrent multi-year revenue from 2021.

Ethernity said it had retained cash reserves at 31 Mach of $1.5m.

As previously announced, it had applied for an Innovation Authority grant in Israel, for which a response was expected by the end of the first week of June.

'However, given the continued high levels of uncertainty created by Covid-19, in the absence of receiving the Innovation Authority grant, it is likely the company will need to seek access to alternative funding in order to trade to its current plan and maximise its ability to secure contracts and conclude negotiations on terms favourable to the company,' Ethernity said.


At 1:21pm: [LON:ENET] Ethernity Networks Ltd share price was -6p at 37p



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