The 4DS Memory Ltd (ASX: 4DS) share price has been in sensational form in recent weeks.
So much so, the ASX tech stock is up 260% since this time last month.
But that run won't be continuing on Thursday after the company requested a trading halt.
What's going on with this ASX tech stock?
Given its incredible rise over the past month, you would be forgiven for thinking that 4DS Memory has requested the trading halt so it can undertake a capital raising.
However, that's not the reason for the halt today. In its request, the company stated the following:
Following the announcement on 23 August 2023, the Company has undertaken additional testing cycles and the Company requests a trading halt whilst it undertakes a comprehensive review of the newly compiled data.
What is this referring to?
Last month, 4DS revealed that it has successfully completed the analysis of the fourth platform lot for its ReRAM memory cells. Pleasingly for shareholders, the results obtained were significantly better than the company were expecting.
Highlights include the successful incorporation of its ReRAM memory cells into the imec megabit array, the validation of 4DS Interface Switching ReRAM technology being transferable from fab to fab, the demonstration of a fully functional megabit array with 4DS Interface Switching ReRAM memory cells, and the achievement of a consistent read and write speeds equivalent to DRAM.
The company also advised that it had proven its endurance with in excess of 2 billion cycles at DRAM read and write speed on a megabit array.
At the time, the ASX tech stock's interim executive chairman, David McAuliffe, stated:
These megabit array results are a turning point for the Company and will now shape the Board's strategic planning over the coming months. I would like to congratulate both the 4DS and imec teams on achieving this milestone and thank shareholders for their continued support.
Over the coming weeks additional analysis of the megabit array will continue and a meeting is being scheduled with imec in early October to discuss strategic plans.
Is the halt good news or bad news?
That's the million-dollar question. It could be that further testing has demonstrated greater durability. The alternative is that further analysis has uncovered an issue.
But for now, this is all speculation.
Thankfully, we won't have to wait long for an answer. The trading halt request is until Monday, so we should have an update before the market open next week.
