Weebit Nano Raised $6.6 Million

Weebit Nano Ltd secured commitments existing and new sophisticated and institutional investors to place circa $6.6 million worth of new shares via a two-tranche placement.

Subscribers will receive 1 option, which is intended to be listed1, for each placement share . The placement options will be exercisable at $0.45 each with an expiry date of 18 months from issue.

Tranche 1 of the placement including the attaching placement options will be issued utilising Weebit Nano’s current placement capacity pursuant to ASX Listing Rule 7.1. Tranche 2 of the placement and the attaching placement options are subject to shareholder approval at an extraordinary general meeting of the company expected to be held on July 23, 2020.

The firm also plans to conduct a non-underwritten share purchase plan (SPP) to raise a further $500,0002, on the same terms as the Placement.

The funds raised from the placement and SPP will be used in the proportions set out in the table below:

• Use of Funds – %
  • Complete the company’s memory module development for the embedded memory market – 50%
  • Transfer the technology to a production facility – 15%
  • Continue selector development work at Leti for the standalone memory market – 20%
  • Sales and marketing activities – 5%
  • General working capital and the costs of the offer – 10%
• Total – 100%

Weebit Nano is now funded to progress towards first commercial agreements3.

The placement was priced at A$0.28 per ordinary share, representing a 21.1% discount to the last traded price prior to the trading halt on 9 June 2020, and a 23.8% discount to the 10-day VWAP of $0.367. It was supported by both existing and new sophisticated and institutional investors.

Commenting on the placement, Coby Hanoch, CEO, said: “We are very pleased with the strong level of support shown by new and existing investors that resulted in the placement being upsized given the level of demand. Completing our memory module for the embedded memory market, and transferring the technology to a production fab are two key near-term milestones that we are very focused on now achieving given the funding put in place. In addition, we can now accelerate our development work across both the embedded memory and standalone memory markets, making up lost time from the Covid-19 related shutdowns. We are moving forward toward first commercial agreements as discussions with potential customers and partners continue to progress, particularly in China where we are seeing strong interest.”

Neither the placement nor the SPP is underwritten.

Market Eye Pty Ltd acted as corporate advisor, and CPS Capital Group Pty acted as lead manager to the company on the placement.

Read also:
Weebit Nano Secured $3.1 Million
And signed letter of intent with Chinese memory solutions company XTX to investigate use of SiOx ReRAM technology in its products.
October 29, 2019 | Press Release