4DS Memory (4DS) investor relations material

Deal rationale and strategic fit

• Combining proprietary resistive memory technology and advanced Edge-AI software creates a leading integrated hardware-software platform for low-power, autonomous, and neuromorphic computing applications.

• The merged entity targets defense, commercial, IoT, robotics, electric vehicles, and drones, leveraging complementary strengths and broadening addressable markets.

• The acquisition is a custom fit, enabling market leadership in Edge AI by integrating tunable memory and efficient AI software, with direct hardware-software optimization.

• Market validation from business development in India supports the commercial thesis and alignment with fabrication capabilities.

• The deal provides growth avenues in hardware, combined hardware/software, and software-only solutions.

Financial terms and conditions

• Acquisition consideration is AUD 5 million in shares at $0.01 per share, with an additional AUD 3.5 million in performance-based milestones and a $150,000 non-refundable deposit.

• Up to three tranches of performance rights are tied to technical and revenue milestones over 12, 24, and 36 months.

• 50% of upfront shares are escrowed for 6 months, the remainder for 12 months post-completion.

• Capital raising of up to AUD 5 million is planned via entitlement issue and placement, with a committed AUD 2 million placement and a rights issue for shareholders.

• Post-raise, the company expects to have sufficient capital for two years, subject to business development outcomes.

Synergies and expected cost savings

• Integration of low-power memory hardware with efficient AI software is expected to deliver unmatched power efficiency and a solution-oriented platform, expanding addressable markets and supporting scalable licensing revenues.

• The combined solution enables longer device operation on smaller batteries, reducing hardware and operational costs.

• Combined technologies target multi-billion dollar markets in autonomous systems and edge AI.