RESEARCH: Weebit Nano In Driver’s Seat Post Cap Raise

FYI | Jul 22 2020

Weebit Nano is expected to deliver its first memory module by end-2020. Pitt Street Research updates its valuation post cap raising

By Pitt Street Research

Weebit Nano ((WBT)) is focused on the commercialisation of its proprietary SiOx-based ReRAM (Resistive Random Access Memory) technology, which has applications in both the discrete and embedded memory markets.

The company has signed collaboration agreements with potential customers across China (XTX Technology and SiEn Integrated Circuits) and South Korea and expects to sign commercial agreements with some of them before the end of Q2 2021.

Management has an impressive track record of meeting or exceeding development timelines. The ongoing COVID-19 crisis has impacted the operations of WBT, but the company is committed to not delaying the project timelines beyond the delays caused by COVID-19.

WBT plans to demonstrate its ReRAM cell for the discrete memory market by mid-2021.

$9m cap raise puts WBT in charge of own destiny                    

The company recently raised $9.1M from an institutional placement and a strongly oversubscribed SPP.

The funds raised will be vital to simultaneously support the growth plans for the embedded and discrete memory modules.

We believe tight budgets and a low share price have held back WBT’s progress in recent months. The fresh funds should help the company drive its development programs full speed ahead.

Promising market for ReRAM applications                                

We expect that embedded ReRAM applications will present the first commercialisation opportunities for WBT.

The market for embedded ReRAM is expected to post strong, long-term growth as it starts complementing some of today’s mainstream memory technologies, such as NOR Flash and SRAM with the potential to replace NOR Flash in certain applications.

Additionally, we believe entry into the discrete memory segment, driven by the XTX Technology collaboration, has exponentially expanded WBT’s total addressable market.

Valuation of $1.36 per share                 

WBT is moving rapidly towards commercialisation, with the expected delivery of its first memory module by end-2020.

Its strong partnerships and focus on continuous technical refinement through its French development Partner Leti, strengthen the investment case.

Following WBT’s recent capital raise and share issue, we adjust our valuation to $1.36 per share ($1.65 previously).

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