Ann: Extension of Voluntary Suspension, page-284

Collaboration with Imec was not supposed to last for ever.

At some point it had to be terminated. Why not now ?


But that doesn't directly explain the extended suspension.

Two possible explanations I can think of :

1 - Imec said the job is done and 4DS said no it's not
=> 4DS needed to find another facility to finish the job and they ask for an extension of suspension

1.1 - A conflict arise between 4DS and Imec (Imec botched the last PFL or Imec don't want to put their name on
4DS results) => 4DS had to find another research facility to validate their results (Stanford Uni ?).

2 - Imec and 4DS agreed that the job was done but they needed time to announce the results

2.1 - Because it is good and they needed the suspension to give all potential bidders the same level of
information (or to give WD some time to come clear with their own problems before making a bid).

2.2 - Because it's only good for niche market and 4DS needed an extended suspension to freez the share price
as they negociate a 200 milions dollars takeover with some unknown company .



If the sauce is right, my take is a mix of 1 and 2.

- 4DS already found another research facility to validate the technology (independant expertise). They will send the wafers there and this research facility will present the technology to the industry.
=> 4DS took the initiative to end collaboration with Imec
Of course, Imec and HGST will receive many thanks for their unvaluable contribution and support.

- 4DS will do the rest of the road alone... And immediately start to negotiate with interested companies.

As they had plenty of time to plan all this, it didn't justify an extended suspension.

Unless if at the last moment WD said ...Wait, wait !


4DS could not make a transition to the next phase without ending something.


It could still be the "niche market" story.

Maybe there is something they couldn't overcome :
- the cells didn't stack properly => expensive memory => niche market

But ASX would not give 4DS an extended suspension - with no public explanation for this extension - just to find a bidder for a failed company.
The ASX guidance notice is pretty clear about that. You can ask for a suspension extension because of financial difficulties and/or need for a financial transaction, but you must state it.
You can't use volontary suspension extension to hide bad news.


https://www.asx.com.au/documents/rules/gn16_trading_halts.pdf

A voluntary suspension will generally only be granted for the period ASX considers reasonably necessary for an entity to manage its continuous disclosure obligations

ASX may agree to suspend quotation of an entity’s securities (or continue an existing suspension) where ASX is satisfied that the entity is in genuine financial difficulties and continued trading in its securities is likely to be materially prejudicial to its ability to complete a transaction critical to its continued financial viability

In such a case, the entity must make a written request for the suspension that includes the information required under Listing Rule 17.2, including the reasons for the suspension (or continued suspension) and a proposed timetable for trading in its securities to resume, for release to the market.
The stated reasons for the suspension must include a forthright account of the entity’s current financial situation, details of the transaction that the entity says is critical to its continued financial viability, and an affirmation that, in the entity’s opinion, continued trading of its securities is likely to be materially prejudicial to its ability to complete that transaction."


Here the suspension extension was granted for a technical update.

The only explanation they could give to ASX for not being able to make a technical update annoucement - hence asking for a suspension - is that announcement need the validation of the other party of the JDA.
And that this other party takes it time.

Si imo, the suspension is not because they need time to find a bidder for a niche market memory product, and not because it was bad technical news.
At least they couldn't give that as a justification to ASX.


So, imo, It's something else.