Weebit Nano raises $50 million to advance its ReRAM memory tech

Weebit Nano raises A$50 million to boost ReRAM development
ReRAM technology offers fast, highly efficient, next-gen memory capability
Company strengthens pipeline with key partner agreements

Special Report: Weebit Nano is gaining momentum in the fast-growing semiconductor space, attracting strong investor confidence and advancing its ReRAM memory technology with a successful $50 million capital raise.

Weebit Nano (ASX:WBT), a leader in next-generation memory technology, has been attracting quite a bit of attention lately in the growing semiconductor space.

The company has just raised A$50 million through a strongly supported underwritten placement to institutional investors. This successful raise is seen as a strong signal of confidence from investors in Weebit’s future potential.

The raise was done at a premium of 6.5% over the five-day volume-weighted average price (VWAP), and was achieved overnight with no trade halt, showing strong institutional support.

The funds will be used to expand the company’s commercialisation activities, support new customer and partner agreements, and accelerate the development of its cutting-edge ReRAM (Resistive Random Access Memory) technology.

ReRAM is a type of non-volatile memory that stores data by changing the resistance of a material, offering faster speeds and lower power consumption.

It has better scalability compared to traditional Flash memory, making it well-suited for use in devices requiring high performance and efficiency, such as smartphones, IoT devices, and artificial intelligence applications.

As the demand for faster, more efficient memory chips continues to grow, some experts predict that ReRAM technology could be the next game changer.

Weebit’s CEO, Coby Hanoch, said that with talks ongoing and a goal of signing several agreements in the next year, the cap raise gives the company more flexibility to pursue new business opportunities.

“Our competitive advantages around customisation capability and the expertise of our team means we are extremely well placed in a large and growing market, as the industry looks to replace embedded flash in next-generation devices,” he said.

Positioned for growth

Weebit Nano’s ReRAM technology is built on four key pillars: device physics for optimising memory performance at the bitcell level, process development for cost-effective production within the target manufacturing flow, analog design for highly efficient memory circuitry and digital design for high-performance memory operation.

Together, these pillars were created to position Weebit to lead in the rapidly growing memory market.

As the only independent provider of qualified ReRAM IP, Weebit differentiates itself in a sector dominated by large players including semiconductor foundries who offer a range of third-party IP solutions and are therefore less flexible in terms of customising solutions.

Weebit controls every aspect of its development through vertical integration – from R&D to selection of manufacturing partners – thereby enabling true optimization of their IP for any given set of requirements, be it automotive, edge AI or cloud.

The company is also actively building a strong customer and partner pipeline, with advanced discussions underway with foundries, device manufacturers and product companies.

“With advanced discussions and negotiations progressing with multiple parties, and our goal to sign multiple foundry and customer agreements over the next 12 months, the strengthened balance sheet provides additional flexibility to pursue new business opportunities on a much stronger footing,” said Hanoch.

But one of Weebit’s greatest assets, according to Hanoch, is its management team.

The board is made up of highly experienced leaders with deep expertise in technology and semiconductors.

Led by Hanoch himself, it includes chairman David Perlmutter, whose team at Intel led the development of many of the company’s key products, including the original Pentium processor; Atiq Raza, who was the key driver to making AMD the leading processor provider it is today; and Dr Yoav Nissan-Cohen, who founded Tower Semiconductor.

About the cap raise

The A$50 million capital raise, which involved the issue of 16.7 million new shares at $3.00 per share, was, as mentioned further above, priced at a 6.5% premium to the five-day VWAP of $2.82 per share. Notably, too, it was at a 28.3% premium to the 30-day VWAP.

This premium pricing indicates strong investor confidence in Weebit’s potential.

“We are continuing to see strong interest from foundries, integrated device manufacturers, and product companies,” said Hanoch.

“And we remain confident in our ability to close a commercial deal this calendar year, as well as executing on our 2025 targets, which include additional agreements with foundries and product companies.”

While the capital raise was completely underwritten, the company had to break from its tradition of offering a Share Purchase Plan (SPP) or Entitlement Offer to retail investors this time around, as this was not possible due to ASX regulation that the price would be below the 30-day VWAP.

This article was developed in collaboration with Weebit Nano, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.