Ann: Equity Raising Investor Presentation, page-262

Morning all, here's an email from Coby just received, plus mine for context. I'm not happy about investing most of my super a couple of days before the epic drop, but with some time to calm down, it is obvious that this raise will take us to the next level pretty quickly. I'm glad Coby sounds calm, and focussed on next steps. And a reality check - we are transferring tech to multiple Tier 1's.  Things literally could not be going better for us, and we're now funded to jump on it.

Hi Alex,

First, I would like to apologize for the late reply. With the raise last week and a very intensive business trip this week I am behind on my emails.

ASX is investigating this so I will not comment on the details.

On my side I will continue to show the market that Weebit is a well governed company with a great BoD and management, and we will do our best to continue to deliver, so I hope this will soon be behind us.

I believe that the fact that we raised $45M (and expect ~$10M more in SPP) despite the difficult market conditions, and we had new institutions join existing ones in this raise, makes this a good raise for both Weebit and shareholders. The raise will enable us to accelerate our market penetration and enable us to grow revenues faster.

Please remember that Dadi, Ashley and I are all in the top 25 shareholders, so we are also looking at things from the shareholder perspective.

Coby


From: Alex
Sent: Thursday, March 23, 2023 2:29
To: Eric Kuret <[email protected]>
Cc: Coby Hanoch <[email protected]>
Subject: RE: Weebit Nano to raise A$45 million via underwritten placement

Hi again Eric, and Coby

I just tried calling.  I expect there’s a bit going on right now.

I also expect you are well aware of the issues.

I’ve been thinking about the situation.  I personally have no doubts about WBT or the integrity of the board and management.

However this large share price crash the day before a CR is a very bad look for the company, and I know many shareholders are questioning their faith / trust in WBT and the Board.

I don’t know if the CR was going to be at a higher share price, which would have been more palatable.  If this was the case, then presumably an institution has deliberately crashed the price to get in cheap.  Or perhaps shorters were involved.  Or there was a leak and big profit taking by institutions.  Some of these scenarios are insider trading at the expense of trusting retail shareholders.

I suspect WBT has been blindsided by some shady institutional behaviours and tarnished with the same brush.  And unfortunately the scale of the drop and the CR timing has upset shareholders and caused (hopefully short term) reputational damage.

Either way it is extremely unfortunate, given how well things were going.  As a shareholder who invested another $230k into WBT a couple of days before the drop, in good faith, it is very frustrating.

Given I don’t know what happened, I don’t know what could be done to fix it, except perhaps just get on with it, announce good news then everyone is happy.

But my worry is that WBT’s reputation has actually suffered more serious harm, that could be a problem.

My gut instinct is, if there is anything that WBT could do to stand up for shareholders (and ethics in general), and call out the dodgy behaviour – ie say it is unacceptable and that ASIC and ASX need to investigate what happened and WBT will cooperate, this would restore long term retail shareholders’ faith in WBT.  Obviously in the real world this may not be a good idea if it leads institutions to then blacklist WBT.

Alex