- Weebit Nano (WBT) has successfully completed a $3 million share purchase plan
- The purchase plan was strongly supported, with nearly $20 million in valid applications received
- Almost a quarter of eligible shareholders applied for more shares under the offer, applying for an average parcel worth nearly $12,500
- However, due to the large number of applications, WBT has confirmed allocations will be cut back severely
- In fact, shareholders should only expect to receive around 5.6 per cent of their current holding to keep the proceeds at $3 million
- WBT shares are trading up 4.83 per cent on Friday at $1.85
Boom tech stock Weebit Nano (WBT) has raised $3 million in a massively oversubscribed share purchase plan (SPP).
During the SPP, 24 per cent of eligible shareholders applied for nearly $20 million worth of shares, applying for an average parcel worth nearly $12,500.
In what could be seen as disappointing news for shareholders or prudent financial management, allocations will now be restricted to 5.64 per cent of their current holding.
The SPP comes on the back of a recent institutional placement that netted another $12 million. Both the placement and SPP were set at $1.70 per share.
Weebit Nano will use the funds to accelerate the development of its next-generation memory technology for the global semi-conductor industry.
Founded in Israel in 2015, the company has since expanded with offices in France and Melbourne. Since listing on the ASX in August 2016 through a reverse takeover, WBT has seen a meteoric rise. An initial $5 million market cap has surged to around $200 million today, a 4000 per cent gain.
Weebit Nano CEO Coby Hanoch says “the operational progress we have achieved to date has underpinned a significant increase in our market capitalisation and trading liquidity. This has resulted in Weebit’s recent inclusion in the S&P/ASX Technology index.”
“We are excited by the opportunities we see and look forward to continuing to grow shareholder value.”
WBT shares are trading up 4.54 per cent at $1.84 at 10:23 am AEDT.