Why is the Weebit Nano (ASX:WBT) share price frozen?

The Weebit Nano share price has been halted this month…

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The Weebit Nano Ltd (ASX: WBT) share price won’t be going anywhere on Monday.

The memory technology company’s shares have been halted since Wednesday 1 September.

Why is the Weebit Nano share price frozen?

The Weebit Nano share price was put in a trading halt last week when it was not in a position to make an announcement. This was regarding an incomplete negotiation relating to a material customer contract that has ceased to be confidential.

Management requested that the suspension remains in place until the earlier of commencement of normal trading on 9 September, or until the release of an ASX announcement.

What has ceased to be confidential?

Bizarrely, the confidentiality breach appears to have occurred following the release of the wrong press release by its media representative.

That release revealed that the company has (though apparently not quite yet) entered into a commercial partnership with US semiconductor foundry SkyWater Technology Inc. (NASDAQ: SKYT).

The agreement, if it finalises, aims to take the company’s ReRAM technology to mass production.

Furthermore, the release advises that under the partnership, SkyWater will have licences to Weebit’s ReRAM technology for use in customer designs.

The release explains that SkyWater is a US-based-and -owned semiconductor developer, manufacturer and a US Department of Defense-accredited supplier. It specialises in advanced product design, development and volume manufacturing of differentiated Integrated Circuits (ICs) for use within the aerospace, defense, automotive, consumer, industrial and IoT industries.

Weebit Nano‘s CEO, Coby Hanoch, said: “Weebit’s first commercial agreement is a major milestone for the Company. It enables us to mass produce our cutting-edge ReRAM technology and offer it to SkyWater’s extensive customer base, putting us on the path to ongoing revenue generation. SkyWater is the ideal first commercial partner for us – they have an impeccable reputation in microelectronics industry, and our ReRAM aligns with their focus on technologies for the future.”

All eyes will be on the Weebit Nano share price when it returns to trade, especially if it finalises this agreement successfully.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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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