Weebit Shares Jump 34% Amid False Broker Report, Company Denies Undisclosed Info
Weebit Nano has responded to an ASX price query following a sharp rise in its share price and trading volume, attributing the activity to a misleading article on the Motley Fool website. The company denies any undisclosed price-sensitive information and confirms full compliance with ASX disclosure rules.
- Weebit Nano denies possession of undisclosed price-sensitive information
- Share price rose from $2.17 to $2.90 amid increased trading volume
- False Motley Fool article cited as cause for trading activity
- Article removed from Motley Fool website after ASX inquiry
- Company confirms compliance with ASX Listing Rules and disclosure policies
Background to the Price Surge
Between August 14 and August 18, 2025, Weebit Nano Ltd (ASX, WBT), a player in the semiconductor technology sector, experienced a notable increase in its share price from $2.17 to a high of $2.90. This price movement was accompanied by a significant uptick in trading volume, prompting the Australian Securities Exchange (ASX) to issue a formal price query to the company.
Company’s Response to ASX Inquiry
In its response dated August 19, Weebit Nano categorically denied holding any undisclosed information that could explain the recent trading activity. The company emphasized that it remains fully compliant with ASX Listing Rule 3.1, which governs continuous disclosure obligations for listed entities.
Weebit attributed the unusual market activity to a now-removed article published on the Motley Fool website on August 15. The article purportedly referenced a reputable broker’s buy recommendation and price target for WBT shares. However, the broker in question confirmed to Weebit that it had not prepared any such report, leading the company to label the article as false.
Implications for Market Integrity
The swift removal of the misleading article from the Motley Fool platform following the ASX’s intervention highlights the challenges regulators and companies face in managing market rumors and misinformation in the digital age. While Weebit Nano’s clear communication and adherence to disclosure rules help maintain investor confidence, the incident underscores the potential volatility triggered by unverified third-party commentary.
Looking Ahead
Investors and analysts will be watching closely to see if Weebit Nano’s share price stabilizes following this episode or if further market speculation emerges. The company’s reaffirmation of compliance and transparency is a positive signal, but the episode raises questions about the influence of external media on stock performance in the semiconductor sector.
Bottom Line?
Weebit Nano’s swift rebuttal and compliance reaffirmation may calm markets, but vigilance against misinformation remains crucial.
Questions in the middle?
- Will Weebit Nano face further volatility if similar false reports reappear?
- How will regulators enhance oversight of third-party market commentary online?
- Could this incident prompt Weebit to increase investor communications or guidance?