Weebit Nano (ASX:WBT) upsizes raising to $6.6M

• Memory tech developer Weebit Nano (WBT) has upped its placement capacity after experiencing strong demand
• The company will now raise around $6.6 million, selling shares for 28 cents each
• Weebit will also raise a further $500,000 through a share purchase plan, which will be on the same terms as the placement
• The company will use the funds to develop its memory technology
• The company said it now has enough funds to progress towards its first commercial agreement, for which Weebit has seen strong interest from China
• Weebit Nano is down 15.5 per cent on the market this morning, trading shares for 30 cents each

Memory tech developer Weebit Nano (WBT) has upped its placement capacity after receiving strong demand.

The company will now raise around $6.6 million in two parts. Investors will receive one 45 cent option for each placement share.

Placement

In tranche one, Weebit will issue over 7.8 million shares, plus 7.8 million placement options and 2.2 million options to brokers for two cents each. This will raise over $2.2 million.

Tranche two, which is subject to shareholder approval, will include 15.5 million shares, plus another 15.5 million options, as well as nine million broker options for 28 cents per share. This will raise $4.3 million.

Share purchase plan

Weebit will also raise a further $500,000 through a share purchase plan (SPP), which the company says will be offered on the same terms as the placement.

Funds

Funds from the raise will be used to complete Weebit’s memory module work, transfer technology to production fab and continue to develop its standalone memory technology.

The company says it now has enough funds to progress towards its first commercial agreement.

CEO Coby Hanoch is pleased with the strong support by new and existing investors which has seen a Placement upsized.

“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,” he said.

“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,” Coby added.

The company said it is in discussions with potential customers and partners to progress its first commercial agreements, particularly in China, where it is seeing strong interest.

Weebit Nano is down 15.5 per cent on the market this morning, trading shares for 30 cents each at 11:59 am AEST.