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4DS Memory (ASX:4DS) on August 28 issued a halt relating to an update around the future of its microchip tech; and now, after not being able to bring that info within two business days, the company has triggered a voluntary suspension.
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This hasn’t been welcomed too fondly by 4DS shareholders as far as the HotCopper forum userbase goes, with the ultimate takeaway from Modnay’s disclosure suggesting to investors the company can’t have anything too certainly gamechanging if it isn’t able to figure out comms around its upcoming update.
That might be unfair, but with a lack of any other data, it’s not the most irrational criticism to arrive at. For its part, 4DS on Monday wrote: “The voluntary suspension is requested pending the release of an announcement in relation to the outcome of the engagement with the Company’s development partners to jointly assess the most effective pathway forward for the Company’s technology for 2025 and beyond.”
If that seems delightfully vague, that’s because it is. In the background, of course, is 4DS’s failed ‘Sixth Lot’ microchip tests, which more recently helped tank the company’s share price back in June.
The company updated on that earlier this month, revealing the devices shorted due to complications in etching – in other words, not a very airtight lab process.
The implication now becomes the company’s ‘development partners’ have pulled the plug on operations, that the company knew about this last Thursday, and that now it’s stalling for time – presumably thinking more about damage control than shareholder value.
Or at least, that’s what one is free to interpret – and, given the lack of competing data, anxiety around the tech stock will likely remain high until the Australian company reveals what it may be sitting on.
4DS last traded at 2.8cps before the halt.
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