Ann: Upcoming release of shares subject to voluntary escrow, page-149

Hi Jeni,

Thanks for your detailed email regarding Weebit Nano. I have sought to address your queries below:

1. The Company has been very active in meeting with many potential partners throughout 2018 and early 2019. Whilst some discussions did not lead to anything, we can say that we are in advanced talks with a number of potential partners which remain ongoing. There are many parameters that influence these discussions and the timing of a potential agreement, most of which are not under our control. So at this point, all we can say is that discussions remain ongoing and that management’s number one focus is on finalising an agreement. If there is any change to the timeline for this, we will of course announce it to the market

1. Seeling by seed investors, rather than the share consolidation itself, is impacting investor confidence. Unfortunately the seed selling is outside the control of management, but we are doing all we can to stem this issue to rebuild confidence of shareholders. Various initiatives have been put in place to cover for any additional selling down, including meeting with local institutional investors and family offices, as well as a number of offshore investors and potential strategic investors, and exploring possible off-market share transfers to take up seed stock.

1. It is the intention of Weebit to advance with the transfer of both 200mm/40nm and 300mm/28nm nodes to the production fab. There are some initial commercial opportunities at the 200mm level, so both will be transferred.

1. I do acknowledge that there has been negative news about EverBlu Capital that has not painted them in the most favourable light. This news came about after the completion the WBT placement (and therefore after they were appointed as lead brokers), and the company had no way of knowing the allegations that have since surfaced. Up until that time EverBlu had a good track record in raising capital for early stage, small-cap technology companies, and in light of the market conditions at the time of the raise (poor sentiment towards early stage tech companies), they achieved a reasonable outcome.

Regards,

Eric

I wrote to Eric last week but didn’t share because he just repeats what Coby says anyway.
But seeing people here have similar questions and frustrations, the above are his responses to my queries.