Published by Christian Moess Laursen
Shares in Ethernity Networks saw a staggering 55% decline after the company announced that the suspension of trading in its stock had been lifted. The suspension was lifted as a result of receiving a 21-day temporary suspension of proceedings from a court in Lod, Israel.
At 1506 GMT, shares were down to 0.35 pence, reflecting a 0.42 pence decrease.
Ethernity Networks, a leading provider of data-processing products, declared on Monday that the court has now assigned a settlement manager to scrutinize the company's short-term budget.
Within the next 10 days, the settlement manager will present his findings to the court, which will then decide whether to extend the temporary suspension of proceedings.
Last week, Ethernity Networks applied for a 90-day temporary suspension of proceedings to address lingering issues with its creditors and execute a fresh business plan.
Following the reception of the 21-day order, the suspension of trading in the company's shares on AIM has been lifted.
In addition, Ethernity Networks received a demand letter from select investors demanding immediate repayment of $1.3 million outstanding under a share subscription agreement dated February 2022, should the company default.