Weebit Nano (ASX: WBT) share price tanks 10%. Here's why

March 24, 2023 04:15 PM AEDT | By Neha Simpy

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Weebit Nano (ASX: WBT) share price tanks 10%. Here's why — Image source: @Mohamed_hassan/Pixabay

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Highlights:

Weebit Nano Limited (ASX:WBT) announced the conclusion of its AU$45 million 100% underwritten institutional placement on Friday.

The funds raised from the offer will enable WBT to finance the additional development and commercial introduction of the company’s ReRAM technology.

The company will organise an offer of new shares through a non-underwritten SPP to current stakeholders.

Semiconductor company Weebit Nano Limited (ASX: WBT) was trading down by 10.018% at AU$4.985 on Friday, 24 March 2023, at around 1:20 pm AEDT, after it resumed trading on ASX following a trading halt, announced yesterday (23 March), pending release of an announcement.

The semiconductor company today announced it completed an AU$45 million fully underwritten placement of nine million paid-up ordinary shares to institutional investors at a price of AU$5 a share, a discount of 9.7% to Wednesday's closing price of AU$5.54.

According to the company, these funds will be used to finance the additional development and commercial introduction of the company’s ReRAM technology. It will also aid other development to strengthen its competitive benefits in embedded and discrete markets. Further, these funds will enable WBT to capitalise on the substantial prospects in the non-volatile memory (NVM) market as Weebit Nano advances its commercialisation plan with leading international foundries and prospective markets.

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The company said ReRAM is quicker, less costly, better energy efficient, along with more environment friendly compared to present flash technology and other upcoming NVM technologies.

Settlement of the new shares issued as per the placement is anticipated to take place on 28 March 2023, and the allocation of new shares will be done on 29 March. Jefferies (Australia) Pty Ltd and Canaccord Genuity (Australia) Limited acted as joint lead managers, book-runners and underwriters to this placement.

Weebit Nano’s upcoming SPP details

Weebit further said it intends to raise another AU$10 million from a non-underwritten share purchase plan to current shareholders on record as of 7:00 pm AEDT on 22 March (record date) with their registered postal address in the ANZ region.

Through this SPP, every eligible shareholder can apply for up to AU$30K worth of new shares at an issue price of AU$5. The company retains the right to either expand or reduce the size of the SPP at its preference.

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