The Weebit Nano Ltd (ASX: WBT) share price is on the move today following the company's successful entitlement offer.
At the time of writing, the computer memory technology company's shares are swapping hands for $2.95, up 2.79%, having hit $3 In early trade.
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Weebit completes capital raising efforts
Investors are driving the Weebit Nano share price higher after the company announced the results of its entitlement offer.
According to the release, Weebit raised approximately $4.4 million (before costs) through its oversubscribed offer.
The retail component offered 1 new Weebit Nano share for every 41 existing shares owned. In total, there were applications for around 1.56 million new fully paid ordinary shares, representing 44% of the total entitlements.
Furthermore, an additional $5.5 million had been raised via applications and commitment for shortfall shares from existing shareholders. These shares comprise all of the shortfall under the company's entitlement offer.
Previously, Weebit completed a placement in mid-November, raising about $25.7 million from four Israel-based institutional investment and pension funds.
In total, the company collected gross funds of $35.6 million via its entitlement offer and shortfall placement.
Weebit Nano will use the proceeds to bring forward the growth initiatives planned within the next two years. This includes supporting the pursuit of business opportunities, research and development in embedded and discrete projects, and general working capital requirements.
Commenting on the news fuelling the Weebit Nano share price, CEO Coby Hanoch said:
Weebit Nano has entered an exciting phase in its corporate journey, transitioning from solely a research and development company into a commercial business. Since our prior raising in November 2020, we have executed on our strategic objectives and achieved several important milestones including signing our first commercial agreement with SkyWater Technologies, and successfully scaling down our ReRAM technology to 28 nanometres.
Weebit Nano is in a very strong position to execute on the significant and exciting growth opportunities we see ahead for our memory technology.
Weebit Nano share price summary
Since this time last year, the Weebit Nano share price has lifted by more than 60%. This year to date it's up around 23%.
The company's shares reached a multi-year high of $4.48 in January, before moving in peaks and troughs.
Weebit Nano presides a market capitalisation of roughly $4.39 billion and has approximately 146.67 million shares outstanding.
