The Weebit Nano Ltd (ASX: WBT) share price had a day to forget on Tuesday.
The semiconductor company's shares ended the day with an 18% decline to $5.70.
This was driven partly by some surprising news announced late in the session. Interestingly, whether or not its shares should have been trading at the point, remains unclear.
For now, though, the Weebit Nano share price has been suspended indefinitely.
What's going on with the Weebit Nano share price?
Yesterday afternoon, Weebit Nano announced that its non-executive director, Fred Bart, has resigned from his position with immediate effect.
This is a bigger deal than you might expect. As Bart was one of only two Australian resident directors, his resignation requires the board to appoint an additional Australian resident director.
This is to comply with the Corporations Act requirement that the board includes at least two Australian resident directors.
Soon after the close, the Australian stock exchange operator suspended the company's shares from trade. It advised:
The securities of Weebit Nano Ltd ('WBT') will be suspended from quotation immediately under Listing Rule 17.3, pending WBT's appointment of sufficient directors to comply with section 201A(2) of the Corporations Act 2001 (Cth).
This essentially means that Weebit Nano shares cannot return to trade until it has found a replacement for Bart.
And while the company has advised that it is focused on ensuring that a suitable replacement is found as soon as possible, it warned that it is "conscious of the need to conduct a comprehensive search process to identify the most appropriate candidates."
With a market capitalisation of over $1 billion, no revenue, and suspended for not having enough directors, it is no wonder that Weebit Nano has been labelled a meme stock. This debacle certainly isn't a good look for the company and the credibility of its management.
