Weebit Nano Ltd - Funding Accelerates Commercialisation Push
Weebit Nano Ltd
Funding accelerates commercialisation push
Weebit Nano Ltd (ASX:WBT) is developer of semiconductor memory technology established in Israel in 2015 and listed on the ASX in 2016 via a reverse takeover. WBT is focused on developing non-volatile memory (NVM) using a Resistive RAM (ReRAM) technology. The company’s ReRAM allows semi-conductor memory to be significantly faster, more reliable and more energy-efficient than flash memory solutions – the current non-volatile standard. Its ReRAM technology offers higher performance and lower-power memory solutions applicable to a range of electronic products. Weebit has been developing ReRAM NVM with research partners and has now demonstrated in production that the technology is scalable, achieving larger memory arrays at smaller resolutions from 40 nanometres initially to a recent demonstration at 28nm. The major research partner – CEA-Leti (the major research arm of the French Alternative Energies and Atomic Energy Commission – CEA) – has broadened the technology licence to WBT allowing further improvements to ReRAM products. The company raised $35.6m in November 2021 to accelerate the move to commercialisation with an agreement signed with Minnesota-based chipmaker SkyWater and the first prototype design expected to be completed by June 2022. Weebit aims to provide functional test results for an embedded ReRAM module and sign licensing agreements with customers by the end of 2022.
Business model
Weebit Nano has focused on non-volatile memory research and development with the help of research partners. The company has successfully developed the ReRAM technology to a commercially viable level confirmed by the first production of ReRAM wafers in Q2 FY22. The company plans to continue commercialisation this calendar year with additional sales and marketing staff hired and customer agreements signed by year end.
Q2 FY22 confirms milestones reached and targeted
During Q2 FY22 WBT received the $35.6m proceeds of the placement and entitlement offer, an additional $7.2m from options exercised and a further $7.6m after quarter end. The company filed for five new patents and progressed the technology transfer to SkyWater to enable commercial production of ReRAM memory modules. Post-quarter end the company held $55.2m in cash, sufficient to fund operations for more than four quarters.
Development potential now to be confirmed
The Australian semi-conductor sector is very small so comparable companies are few. The most obvious mature international example is the UK firm ARM which parent Softbank Group has announced it plans to IPO by the end of March 2023. Domestically, similar companies focused on semi-conductor R&D include Brainchip Holdings (ASX:BRN) and 4DS Memory (ASX:4DS), both of which are also in the early stages of commercialisation and still loss-making. Valuation is highly dependent on reaching commercialisation milestones towards the end of 2022.
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