Australian listed next-generation memory developer Weebit Nano Limited (ASX:WBT) has raised $25.7 million via a Placement at $2.84 per share to four Israel-based institutional investment and pension funds with substantial technology experience. The company also announced a pro rata non-renounceable Entitlement Offer for existing shareholders to raise up to a further $9 million before costs.
The cornerstone investor for the institutional Placement was Meitav Dash, a major institutional investment and pension fundin Israel managing over US$65 billion in assets.
Funds raised will be used to support Weebit’s technical and commercial progress, including the migration of its ReRAM memory technology to smaller geometries (below 28nm), ongoing development of the discrete memory component, and expanding sales and marketing activities.
Commenting on the Placement and Entitlement Offer, Weebit Nano CEO Coby Hanoch said, “We have always believed we were progressing ground-breaking technology, and are very encouraged by the strong level of support shown by our new Israeli institutional investors. These institutional investment and pension funds have substantial technology investment experience and enter our register during an exciting time for Weebit Nano as we build off recent milestones.
“We see huge potential for Weebit Nano’s memory technology across multiple attractive markets. This capital raising allows us to bring forward growth initiatives that were planned for two years’ time, accelerating our ability to deliver on the attractive opportunities we see for the company as commercial interest in our technology grows.
“With a loyal and supportive shareholder base, many of whom have been with the company for the past five years, as with past capital raisings we wanted to ensure that existing shareholders also had an opportunity to further invest on the same terms as our new institutional shareholders. The Entitlement Offer announced today provides that opportunity and we look forward to the continued support from our existing shareholders as we further commercialise our ReRAM technology and progress our research and development activities.”
Since Weebit last raised capital from shareholders in November 2020, it has delivered a series of achievements that have demonstrated ongoing technological and commercial progress. As a result, Weebit is experiencing a growing level of customer interest in its unique Resistive Random-Access Memory (ReRAM) technology.
At the same time, market recognition of the need for new technologies to replace embedded Flash memory has materially increased. The successful demonstration of Weebit’s ReRAM reliability and robustness at 28 nanometres (nm) strongly positions it to be a leader in non-volatile memory (NVM) for advanced processes where it is no longer technically or economically feasible to embed Flash memory.