Why the Weebit Nano (ASX:WBT) share price surged 12% today

The Weebit Nano (ASX: WBT) share price was surging today after the company announced it will file two new patents with its strategic partner.

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Weebit Nano Ltd (ASX: WBT) shares were on the rise today. This came after the company announced it will file two new patents with its strategic partner, Leti. By the market’s close, the Weebit Nano share price was up 11.54% to $2.03. In comparison, the S&P ASX All Technology Index (ASX: XTX) was down 1.3% to 2,843 points.

Quick take on Weebit Nano

Weebit Nano develops next generation computer memory technology. The company addresses the growing need for data storage and embedded non-volatile memory (NVM) technology with its new, resistive random-access-memory (ReRAM) technology.

According to the company, “Weebit Nano’s technology enables a quantum leap, allowing semiconductor memory elements to be significantly cheaper, faster, more reliable and more energy efficient than the existing Flash technology”.

What’s driving the Weebit Nano share price higher?

The Weebit Nano share price was rocketing higher today after the company advised it has recently filed two new patents related to its to Silicon Oxide (SiOx) ReRAM technology. 

The first of the patents outlines a process improvement that enables high memory yield and high uniformity across memory cells. The goal is to maximise production efficiency during fabrication which will ultimately lead to best-in-industry class memory chips.

The second patent filed relates to the selector development utilising a very fast read speed. This, in turn, allows less power to be required and reduces stress during the read operation of a memory chip.

Management commentary

Weebit Nano CEO Mr Coby Hanoch said:

Weebit is continuing to build its IP portfolio as it moves closer to first commercialisation, filing two new patents to protect our technology and enhance the IP value for our licensees. Together with our strategic partner Leti, we have filed eight patents over the past two years.

The recent capital raisings support accelerated research and development that is expected to generate additional patents as we progress towards production.

Weebit share price summary

The Weebit Nano share price has shot up higher over the past 6 months, reflecting a gain of more than 600%.

Weebit Nano shares reached a high of $2.47 last month after the company provided investors with an activities update for the first quarter of FY21.

Weebit has a current market capitalisation of $207 million.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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