Public semiconductor IP company Weebit Nano [ASX:WBT] has announced the successful raising of equity capital through a fully underwritten $45 million share placement.
The fintech says that the funds will accelerate the development and commercialisation of its advanced ReRAM semiconductor memory technology.
Weebit’s CEO, Coby Hanoch, also acknowledged the level of support shown by investors, reflecting the group’s technical progress over the past year.
WBT shares had dropped 10% in the early morning on Friday, worth $4.99 each.
However, so far in 2023, WBT shares have increased 53.5% and 84% in the past 12 months:
Weebit Nano marks $45 million in capital success
Weebit Nano, the technology developer responsible for the creation of ReRAM IP — an embedded smart circuitry and memory running algorithm — announced the completion of a fully-underwritten $45 million capital raising.
Nine-million new fully paid ordinary shares were offered to institutional investors at a price of AU$5.00 per share, which represented a 9.7% discount to the last close price as at Wednesday, 22 March and a 30.2% discount to the five-day volume-weighted average price of AU$7.16.
Proceeds will fund further developments and commercial roll-out of its ReRAM technology and support further development to ‘solidify competitive advantages’ in embedded and discrete markets.
Weebit will also capitalise on the range of opportunities for the non-volatile memory (NVM) market and will move to progress commercialisation strategies with leading global factories and customers.
Mr Hanoch commented:
‘The strong level of support shown by new and existing sophisticated and institutional investors in Australia and offshore reflects our technical progress over the past year and the significant market opportunities for our proven innovative memory technology.
‘Our first ReRAM product is now available to customers through SkyWater Technology, and we are in advanced discussions with most of the world’s leading fabs and integrated device manufacturers. Funds raised, combined with our strong balance sheet of approximately $45 million cash at the end of December 2022, ensure we are well-placed to transfer and qualify our ReRAM technology in Tier-1 fabs and foundries to capitalise on the growing global need for faster, better performing memory technology.’
Weebit’s embedded ReRAM technology will soon be available in the US through SkyWater Technologies 130 nm process, which was created for industries like medical and aerospace engineering.
‘Our ReRAM has already demonstrated it is able to scale to smaller geometries for more advanced applications, and has significant competitive advantages over both the existing memory technology and other emerging players,’ Hanoch adds.
As the Placement ends, Weebit will also conduct an offer of new shares under a non-underwritten share purchase plan, providing each shareholder with the opportunity to apply for up to $30,000 worth of new shares at the same issue price as the Placement.
This share purchase plan is intended to raise a further $10 million, and participation lines will close on 19 April.
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