Hotly watched tech stock 4DS Memory (ASX:4DS), long promising the market it has what it takes to revolutionise microchip technology wholemeal, has sunk nearly -60% on Monday after it declared a testing failure.
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The driving force behind that sell-off can possibly be explained in one line part of 4DS’s Monday disclosure: “This will likely cause a delay to the development pathway for the Company’s Interface Switching ReRam Technology.”
In other words, the company’s entire overall deal is going to be delayed.
The technical explanations behind this testing round failure are, at best, terribly dry – but it’s worth noting this “Sixth Lot” testing was supposed to follow a “Fifth Lot” test, where issues like this should have been identified.
“The initial analysis of the wafers within the entire Lot indicates that the necessary process modifications and optimisations introduced into the Sixth Platform Lot have not yielded the expected electrical testing and characterisation results,” 4DS wrote.
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The company was keen to remind investors that testing will still continue and that Sixth Lot tests are ongoing, but with mandatory disclosure laws in Australia what they are, it’s clear what the market’s thinking.
That’s also evident in the share price.
“The company currently has approximately $10 million in available funds, so is well funded,” the medical technology company added.
4DS last traded at 2.7cps.
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Jonathon Davidson
The Market Online, Australia
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