Is Weebit Nano Ltd On A Downtrend Now?

  • Apr 24, 2019 AEST
  • Team Kalkine
Is Weebit Nano Ltd On A Downtrend Now?

Weebit Nano Limited (ASX: WBT) is an Israel-based semiconductor company engaged in the business of developing next-generation computer memory technology, in continuation to the announcement made on 16th April 2019, updated about the three largest escrowed shareholders of WBT selling >6.5 million shares. WBT informed its shareholders that the transfer of ~ 2.5 million shares has yet to be completed. Further communication regarding this will be made as and when the transactions are completed.

Commenting on the block deal, the management confirmed the fundamentals to remain strong with technical milestones and efficient Board. The company is in discussion with the potential partners and customers, which is a key priority as of now.

On 15th March 2019, the company updated that 10,044,979 WBT fully paid ordinary shares of WBT from voluntary escrow (subject to voluntary escrow arrangements) which was released on 31st March 2019. The company, on 20th September 2018, informed ASX about a group of founding shareholders, which includes two largest shareholders, Chairman and a Non-Executive Director of the company, agreed to implement an escrow period on 251,124,438 shares. Consequently, total Escrowed Shares came down to 10,044,979 from 251,124,438 as a result of share consolidation on 25 for 1 basis.

The company in its earlier update informed that “Ariel Malik-102 Capital Management as trustee for CTW changing the World Technologies Ltd” ceased to be a substantial holder of the WBT since 25 March 2019.

WBT and Leti have entered into an agreement to expand their collaboration to develop a system demonstrating advanced artificial intelligence algorithms implemented using SiOx ReRAM. Leti is a French research institute, known as a global leader in micro-electronics subject and has been researching neuromorphic computing for many years. Under the renewed agreement, SiOx ReRAM will be used to build an advanced neuromorphic demonstration system, which will be based on SNN test vehicle for implementing synapses. The management of Leti shared their excitement on the partnership expansion with Weebit in the area of artificial intelligence and neuromorphic. Management of Leti plans that the Weebit’s ReRAM technology embedded with neuromorphic demonstrator will be shown publicly in July at Leti Days Conference, which is likely to be attended by many of the major memory market participants.

Management of WBT, on three years of the collaboration, considers the partnership as a great success. Management is of the view that WBT will be prepared for future memory and technology requirements through this extension of the collaboration with Leti.

Analysing the results for H1 FY19, the company incurred net loss amounted to $4,325,784 as compared to $1,967,667 in H1 FY18. Higher losses were largely on account of the enhanced R&D operations, which led to an increase of ~$1.8 million in R&D cost. Cash flow from operating activities for H1 FY19 stood at $3,907,567, with the net working capital surplus of $3,539,886, including cash of $3,375,027. Looking at its performance since the time of listing in 2010, the stock has accumulated losses till date.

The stock has run up very sharply in the last one month with 80.56% gain. With a very short-term horizon of last five trading session, the stock has risen 18.18%. However, the stock has witnessed a negative return of 52.73% in the last one year. At the current price of $0.650 (on 24 April 2019 AEST 03:45 PM), the stock is trading towards its 52-week low, which is $0.350.


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