Weebit Nano (ASX:WBT) Accelerates AI Memory With A$150m Cash

Down After the Raise, But Onsemi & Texas Instruments Are the Real Catalyst

Weebit Nano opened below the placement price today, which means the institutions that participated are already sitting in the red. Even so, the company successfully completed a fully underwritten A$80M placement, plus a A$7M Israeli placement, taking total proceeds to A$87M.

The company also has a non-underwritten Share Purchase Plan (SPP) open, targeting up to a further A$15 million from eligible retail shareholders in Australia and New Zealand. If the SPP fully subscribes, total proceeds could reach approximately A$102 million.

The shares were issued at A$4.05, a 10% discount to the last closing price. Post-raise, total shares on issue will be roughly 230 million, with cash on the balance sheet rising to around A$150M. That is the strongest balance sheet in the company’s history.

It is also important to keep the placement discount in perspective. Institutions writing large cheques quickly expect a discount in return for taking immediate risk and giving the company price certainty. A 10% to 15% discount is completely normal for an ASX placement of this size.

For us, that does not suggest management is under pressure. It is simply the market-clearing price for bringing in large-scale institutional capital quickly.

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What Is Weebit Actually Doing With The Money?

Weebit is allocating A$25M to the most near-term relevant area, expanding its research, development, and engineering teams, building more automation tools, and scaling customer support. The goal is to better support existing customers, such as onsemi through qualification while also increasing capacity to pursue new customer wins. This directly addresses the main bottleneck in the model, because Weebit can only run so many customer engagements at once with its current team.

The second investment bucket is more medium term and focused on AI. Weebit is building out capability in in-memory compute and neuromorphic processing, which reflects the company’s view that ReRAM is well suited to next-generation AI accelerators. Three government-backed programs in Korea, Israel through NEMO, and Europe through NEAIXT are already engaging with Weebit, and this capital should help move those research partnerships closer to commercial outcomes.

The third bucket is focused on advancing the ReRAM technology itself by improving speed, density, and power consumption, while also expanding wafer production. That matters because it both improves the technology and gives current customers more production data more quickly. A$10M of this bucket is specifically being allocated to expanding wafer production runs, with the main objective of shortening qualification timelines.

Where Does The Business Actually Stand?

The TI deal is the most important signal in this presentation. Texas Instruments is the world’s number one analog chip maker and number four in automotive, with 100,000 customers and tens of billions of chips produced each year. Their decision to license Weebit’s ReRAM is a major third-party validation of the technology’s commercial credibility at the highest tier. Management also noted that this deal is already helping accelerate discussions with multiple other foundries and IDMs.

The near-term catalyst to watch is onsemi qualification. Test chips are currently in qualification, with completion targeted by the end of 2026. If that process is successful, it would mark the first real step toward mass production royalties, which is the highest-margin part of Weebit’s business model. For us, that is the most important milestone over the next 12 months.

Weebit has also said it is in ongoing discussions and evaluations with more than 20 foundries, IDMs, and product companies. That matters because every foundry deal has a compounding effect. Each licensed fab becomes a platform through which multiple product companies can access ReRAM, which means a single relationship can potentially unlock several future royalty streams.

What’s Next For Weebit

For investors looking at Weebit Nano, the next big milestone will be any new commercial partnerships. But the most important technical validation remains the completion of the qualification process with onsemi.

If that is successful, it would likely be a major re-rate catalyst because it would open the door to the EV market while also validating ReRAM as a real-world memory technology that can move beyond concept and into commercial use.

If you want to learn more about Weebit Nano, we cover the stock and provide institutional-grade research here.

Pitt Street Research Directors owns shares in the company discussed. This article reflects personal views and is not financial advice.