Australian semiconductor company, Weebit Nano Ltd (ASX: WBT), made a rocky return to the stock market after being suspended earlier this week. The company’s share price has continued to slide, falling by 5% to $5.40 as of this morning. In fact, its shares have plummeted by a staggering 30% in just one week. Weebit Nano’s shares were suspended when one of its Australian resident directors abruptly resigned, leaving the company without the required two directors on its board. To rectify this, the company has made a temporary appointment, with its company secretary, Mark Licciardo, joining the board as an independent non-executive director. However, this sudden turn of events does not bode well for a billion-dollar company.
In other news, Weebit Nano announced that its Resistive Random-Access Memory (ReRAM) intellectual property has been fully qualified by SkyWater Technology (NASDAQ: SKYT) for industrial temperatures. This qualification confirms the reliability, repeatability, and quality of Weebit Nano’s embedded ReRAM module when used with SkyWater’s 130nm CMOS (S130) process. The qualification involved rigorous testing of multiple silicon die from three independent wafer lots, following industry standards. Weebit Nano’s CEO, Coby Hanoch, expressed confidence that the qualification would lead to the adoption of their ReRAM technology by customers this year.
SkyWater Technology, an American semiconductor engineering and fabrication foundry with a market capitalization of US$380 million, offers a technology-as-a-service approach and specializes in mixed-signal designs, rad-hard ICs, ROICs, and power management. Although the company has not reported a profit in the past five years and generated US$66 million in revenue during the previous quarter, its technology is seen as a valuable fit for Weebit Nano’s ReRAM technology.
Despite this positive development, it remains to be seen whether Weebit Nano can generate sufficient revenue to justify its billion-dollar market capitalization. The recent plunge in its share price is cause for concern and highlights the volatility of the market. Investors will be closely watching as the company navigates these challenges and works towards establishing itself as a key player in the semiconductor industry.
In conclusion, Weebit Nano’s share price has suffered further losses following its suspension and the sudden resignation of one of its directors. However, the company’s ReRAM intellectual property has received full qualification by SkyWater, raising hopes for future customer adoption. As the market continues to fluctuate, Weebit Nano must prove its worth and drive revenue growth to regain investor confidence.
