- 10 November 2021 16:35
Weebit Nano raises $25.7m to accelerate commercialisation
Locally listed Weebit Nano Limited (ASX:WBT), a developer of next-generation memory technologies for the global semiconductor industry, has raised approximately A$25.7 million through a placement to four Israel-based institutional investment and pension funds, and will issue a pro rata non-renounceable entitlement offer to raise up to approximately A$9.0 million (before costs) if fully subscribed.
The cornerstone investor for the institutional placement was Meitav Dash. Managing over US$65 billion in assets, Meitav Dash is a major institutional investment and pension fund in Israel, operating for over 40 years with approximately 1,000 employees.
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 Weebit 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.
Weebit is therefore raising funds to capitalise on growing momentum to accelerate new commercial opportunities and research and development activities to take Weebit’s ReRAM into even smaller geometries, given progress on discussions with potential production partners and customers.
When Weebit last raised capital from shareholders in November 2020, it was well positioned to accelerate research and development activities and move towards first commercial agreement. The current round of funding will ensure that Weebit is capitalised to execute on its current commercial and technological opportunities, with the aim of converting current and future opportunities into commercial agreements and revenue. These include migrating Weebit’s ReRAM technology to smaller geometries (below 28nm) and continued development of the discrete memory component, growing it to larger arrays.