WEEBIT NANO LTD — Interim / Quarterly Report 2018

Oct 26, 2017

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Q1 FY2018 Activities Update

Approaching the final stages of the 40nm milestone

Key highlights for Q1

• Successfully completed the capital raise of $2.5 million

• Appointment of Mr Coby Hanoch as new CEO and Managing Director

• Successful testing results achieved on 300nm 4Kb memory array cells – low energy and fast write speeds replicated on 4Kb memory array cells

• On track to achieve a 40nm ReRAM Silicon Oxide working cell by the end of 2017

27 October, 2017 – Weebit Nano Ltd (ASX: WBT) is pleased to provide an update for the quarter ending 30 September 2017, along with its Appendix 4C cash flow results.

Capital raise successfully completed

During the quarter, Weebit Nano successfully raised $2.5 million, with a number of existing and new shareholders participating. The proceeds raised will be used to fund the Company’s continued development of its technology, which includes the goal of achieving a 40nm working cell by the end of this calendar year, and to assist with securing partnerships and collaborations.

These funds were received following the end of the September 2017 quarter, and will therefore be reflected in the December 2017 cash flow statement.

Importantly, following the capital raise, Weebit Nano is now well funded to work aggressively towards its commercialisation goals.

Appointment of new CEO

Weebit Nano was very pleased to announce the appointment of Mr Coby Hanoch as its new Chief Executive Officer and Managing Director. Mr Hanoch joins Weebit Nano with 15 years’ experience in engineering and engineering management, and 22 years’ in sales management and executive roles. He has significant experience in leading companies from early stage development to market, which will be critical in leading Weebit Nano through its important next stage of development.

Mr Hanoch’s key focus will be advancing Weebit Nano’s technology towards a commercially viable memory solution, as well as exploring possible commercial collaborations or partnership opportunities.

Contact Office: +972-9-7797832 info@weebit-nano.com www.weebit-nano.com

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Significant speed and efficiency results achieved on 300nm 4Kb memory array

Weebit Nano announced the achievement of 4Kb (Kilo Bit) array results on 300nm cells, with 100 per cent yield on selected arrays, signifying the health of the company’s technology. The results, achieved in Leti’s pre-industrialisation facilities in Grenoble, replicated the significant write speeds and energy efficiency results achieved on a single cell.

The successful results were achieved under a variety of testing and process conditions, and provides the company with a high degree of confidence in being able to further miniaturise its technology further.

Preliminary speed tests have demonstrated “write” speeds 100 to 1000 times faster than traditional 3D Flash technology while using significantly lower energy. Weebit Nano believes that the results it has achieved with its technology show great promise to be applied to high capacity storage devices, in particular in Artificial Intelligence and cognitive computing applications.

Progressing towards 40nm

With the successful results now achieved on 300nm 4Kb memory cells, this represents the final significant step toward the company’s goal of producing a 40nm ReRAM Silicon Oxide working cell. The Company remains on track to achieve this goal by the end of the 2017 calendar year. Following this, Weebit Nano will then aim to scale up the capacity of its cells towards Mega Bit array blocks, and in doing so will move much closer to the commercialisation of its technology.

For further information, contact:

Investors Media Eric Kuret Tristan Everett Market Eye Market Eye M: +61 417 311 335 M: +61 3 9591 8905 E: eric.kuret@marketeye.com.au E: tristen.everett@marketeye.com.au

About Weebit Nano Limited

Weebit Nano is a leader in the development of next generation computer memory storage, and plans to become the new industry standard in this space. Its goal is to address the growing need for a significantly higher performance and lower power data storage technology. Weebit Nano’s ReRAM technology is based on fabfriendly Silicon Oxide, allowing the company to rapidly execute, without the need for special equipment or preparations. The Company secured several patents to ensure optimal commercial and legal protection for its ground-breaking technology.

Weebit Nano’s technology enables a quantum leap, allowing semiconductor memory elements to be significantly cheaper, faster, more reliable and more energy efficient than the existing Flash technology. Weebit Nano has signed an R&D agreement with Leti, an R&D institute that specialises in nanotechnologies, to further develop SiOx ReRAM technology.

• For more information please visit: http://www.weebit nano.com/

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Contact

Office: +972-9-7797832 info@weebit-nano.com www.weebit-nano.com

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

+Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

Weebit Nano Limited (asx:WBT) ABN Quarter ended (“current quarter”) 15 146 455 576 30 September 2017

30 September 2017

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date ( 3
		$A’000	months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a) research and development	(56)	(56)
	(b) product manufacturing and operating costs	-	-
	(c) advertising and marketing	(51)	(51)
	(d) leased assets	(31)	(31)
	(e) staff costs	(185)	(185)
	(f) administration and corporate costs	(215)	(215)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	-	-
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	-
1.8	Other: Former activities (Exploration)	-	-
1.9	Net cash from / (used in) operating activities	(538)	(538)

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment	-	-
	(b) businesses (see item 10)	-	-
	(c) investments	-	-
	(d) intellectual property	-	-
	(e) other non-current assets	-	-
2.2	Proceeds from disposal of:
	(a) property, plant and equipment		-
	(b) businesses (see item 10)	-	-
	(c) investments	-	-
	(d) intellectual property	-	-
	(e) other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investing activities	-	-
3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	-	-
3.2	Proceeds from issue of convertible notes	-	-
3.3	Proceeds from exercise of share options	-	-
3.4	Transaction costs related to issues of shares,	-	-
	convertible notes or options
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financing activities	-	-

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

4.	Net increase / (decrease) in cash and cash
	equivalents for the period
4.1	Cash and cash equivalents at beginning of
	quarter/year to date	1,695		1,695
4.2	Net cash from / (used in) operating activities	(538)		(538)
	(item 1.9 above)
4.3	Net cash from / (used in) investing activities		-	-
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities		-	-
	(item 3.10 above)
4.5	Effect of movement in exchange rates on cash		19	19
	held
4.6	Cash and cash equivalents at end of quarter	1,176		1,176
5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A’000	$A’000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	1,176		1,695
5.2	Call deposits		-	-
5.3	Bank overdrafts		-	-
5.4	Other (provide details)		-	-
5.5	Cash and cash equivalents at end of quarter	1,176		1,695
	(should equal item 4.6 above)
6.	Payments to directors of the entity and their associates		Current quarter
			$A'000
6.1	Aggregate amount of payments to these parties included in item 1.2			134
6.2	Aggregate amount of cash flow from loans to these parties included in
	item 2.3
6.3	Include below any explanation necessary to understand the transactions included in items 6.1			and
	6.2

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

7.	Payments to related entities of the entity and t heir associates	Current quarter
		$A'000
7.1	Aggregate amount of payments to these parties i ncluded in item 1.2		-
7.2	Aggregate amount of cash flow from loans to the se parties included in		-
	item 2.3
7.3	Include below any explanation necessary to unde rstand the transactions	included in items 7.1 and
	7.2

8.	Financing facilities available		Total facility amount at	Amount drawn at
	Add notes as necessary for an understanding of		quarter end	quarter end
	the position		$A’000	$A’000
8.1	Loan facilities		-		-
8.2	Credit standby arrangements		-		-
8.3	Other (please specify)		-		-
8.4	Include below a description of each facility ab	ove, including the lender, interest rate and whether it
	is secured or unsecured. If any additional facilities have been entered into or are proposed to be
	entered into after quarter end, include details of those facilities as well.

9.	Estimated cash outflows for next quarter	$A’000
9.1	Research and development		634
9.2	Product manufacturing and operating costs		-
9.3	Advertising and marketing		38
9.4	Leased assets		26
9.5	Staff costs		241
9.6	Administration and corporate costs		338
9.7	Other (costs of capital raise September2017)*		307
9.8	Total estimated cashoutflows		1,584

*The Company announced a successful placement of $2.5 million (before costs) on 21 September 2017. As these placement funds were not received until after 30 September 2017 they have not been included in this cash flow statement but will be included in the statement for the quarter ended 31 December 2017.

Funds from this placement, together with cash on hand at the end of September 2017 (refer 4.6 above) , will be utilized to meet these forecast outflows for the next quarter.

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

10.	Acquisitions and disposals of	Acquisitions	Disposals
	business entities
	(items 2.1(b) and 2.2(b) above)
10.1	Name of entity	-	-
10.2	Place of incorporation or registration	-	-
10.3	Consideration for acquisition or	-	-
	disposal
10.4	Total net assets	-	-
10.5	Nature of business	-	-

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

27 October 2017 Sign here: ............................................................ Date: .............................................

Company secretary

Christopher Lobb Print name: .........................................................

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

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