Shares of Ethernity Networks have more than doubled following the announcement that the company’s settlement manager has requested an extension to the temporary suspension of payment proceedings. At 10:16 AM GMT, shares were up by 1.93 pence, reaching a total of 3.45 pence.
Ethernity Networks, a provider of data-processing products, is currently working towards resolving outstanding issues with creditors and implementing a new business plan. The company stated on Thursday that this extension request would push the suspension period until the end of December. Originally, Ethernity Networks had obtained a 21-day temporary suspension from an Israeli court in mid-October to address creditor payment issues and execute their plan.
To oversee the company’s short-term budget, the court has appointed a settlement manager.
As previously disclosed on October 12th, Ethernity Networks intends to secure interim funding of up to 1.0 million Israeli shekels ($246,034) to ensure its continuous operations. Chief Executive David Levi has agreed to provide this funding. Ethernity Networks has stated that it will provide an update once the financing is in place.
Additionally, Ethernity Networks is currently engaged in discussions with 5G Innovation Leaders Fund regarding a settlement notice amounting to $90,000. However, the company has expressed doubt over the validity of this notice.
Earlier this month, Ethernity Networks received a demand letter from 5G Innovation Leaders Fund, which requested immediate repayment of $1.3 million outstanding under a share-subscription agreement from February last year.