- 4DS Memory (4DS) has raised $4.5 million through a placement and intends to raise an extra $2.5 million through a share purchase plan
- 100 million shares at 4.5 cents each were issued to American and Australian institutional and high net worth investors
- Under the share purchase plan, eligible shareholders can buy up to $15,000 of new shares at 4.5 cents each
- Funds from the placement and share purchase plan will be used to progress the development of 4DS’ Interface Switching ReRAM technology with imec and Western Digital's subsidiary, HGST
- 4DS' shares are down 7.55 per cent and are trading for 4.9 cents each
4DS Memory (4DS) has successfully raised $4.5 million, placing 100 million shares at 4.5 cents per share.
The semiconductor development company received strong interest from American and Australian institutional and high net worth investors.
The placement offer price represents a 15.1 per cent discount to the closing price on June 22, 2020, and 17.6 per cent to the 15-day volume-weighted average price (VWAP).
"We are extremely encouraged by the success of the placement following on from our recent results that included input from Western Digital’s 100 per cent subsidiary, HGST and of course from imec," Managing Director and CEO Dr Guido Arnout said.
During COVID-19 lockdown restrictions, the company completed analysis on its Initial Platform Lot of 300 millimetres wafers. These wafers have 4DS' memory, combined with imec's megabit platform.
Pleasingly, 4DS says the data was highly significant and provided a "magnificent" platform to continue wafer testing.
"We have an outstanding and industry recognised team of engineers and material scientists who are at the cutting edge of Storage Class Memory development. We look forward to further developments as we move towards commercialisation of the technology," Chairman Jim Dorrian said.
The placement is expected to be settled on July 3 and new shares will be allocated and commence trading on July 6.
Share purchase plan
In addition to the placement, 4DS will offer a share purchase plan (SPP) to eligible shareholders.
Under the SPP, eligible shareholders can acquire new shares worth up to $15,000 to raise up to $2.5 million at 4.5 cents per share.
If 4DS receives applications that equal less than $2.5 million, it reserves the right to place the shortfall. If 4DS receives applications for more than $2.5 million, the company has the right to scale back applications or accept over-subscriptions.
4DS will use the money from the placement and share purchase plan to continue developing its Interface Switching ReRAM. The development includes accelerating work, including with imec and HGST, maintenance of granted patents and additional patent filings and for general working capital.
Shares under the SPP are expected to be issued on July 30.
4DS' shares are down 7.55 per cent and are trading for 4.9 cents each at 10:46 am AEST.