The 4DS Memory Ltd (ASX: 4DS) share price is pushing into positive territory on Monday. This comes after the company announced an update to its recent Share Purchase Plan (SSP) offer.
In mid-morning trade, the memory storage company's shares are up 8% to 5.4 cents.
What did 4DS Memory announce to the ASX?
According to its release, 4DS Memory advised it has successfully completed its SSP following "very strong support" from shareholders.
The company received a large number of applications, totalling around $5.934 million. This represents significant interest given the company's target of $2.5 million.
As a result, the board has decided to increase its SPP offer size to $3.5 million and scale back applications.
Eligible investors who applied for the minimum $2,000 amount will be unaffected by the scale back. However, those who applied for more will be subject to a 46.4643% reduction on their applications. This is to achieve the revised SPP target ($3.5 million).
The terms offered were the same as the previous $2.5 million placement that saw domestic and international institutions take part.
The total proceeds of $6 million will be used to progress the development of 4DS' Interface Switching ReRAM technology. In addition, the remaining funds will be allocated towards the maintenance of intellectual property and general working capital.
4DS Memory expects the new shares to be issued and available for trading from tomorrow. Refunds will be credited to shareholder accounts or by cheque, also by tomorrow.
4DS Memory share price summary
During the past 12 months, the 4DS Memory share price has lost about 55%, with year-to-date down almost 60%. The company's shares reached an all-time high of 28 cents in January 2021.
On valuation grounds, 4DS Memory presides a market capitalisation of about $71.46 million, with 1.37 billion shares outstanding.
