News: Fitzroy Resources acquiring U.S. memory technology company

Fitzroy Resources (ASX:FRY) is poised to become the next resources company to transform itself into a technology play with its agreement to acquire Silicon Valley based memory developer 4D-S.

The 2015 worldwide memory market is forecast to be worth more than US$80 billion with a compound annual growth rate of 15%.

Non-volatile memory (NVM) is the fastest growing segment of this market and today is mostly based on Flash memory, which is not advancing fast enough to scale to meet growing storage needs.

Unlisted public company 4D-S has invested US$10 million over 8 years developing next generation non-volatile ReRAM memory for mobile and cloud storage applications.

This has the potential to provide superior performance at a fraction of power costs and heat.

It is working with its partner HGST to refine consistency and scale of cells on a wafer prior to testing a full working prototype.

Fitzroy will issue 385,604,174 shares, 67,604,168 performance shares and 36,458,333 unlisted options to acquire 4D-S.

It has also received firm commitments to place 90 million FRY shares priced at $0.025 to sophisticated and professional investor clients of Forrest Capital to raise $2.25 million.

The capital raising includes oversubscriptions of up to a further 20 million shares to raise a further $500,000.

Following shareholder approval and with effect from completion of the transaction, Fitzroy proposes to change its name to 4D-S Holdings Limited and trade on the ASX as 4DS.