- Quantum technology specialist Archer Materials (AXE) launched a $3 million share purchase plan today
- Under the plan, shareholders can subscribe for up to $30,000 in new shares at 60 cents each
- This is a discount of over 12 per cent on Archer’s last closing price
- The new funds will be used to speed up Archer’s current work programs
- These include developing quantum bit processor chip technology and finishing test work at the Franklyn halloysite pilot plant
- Shares in Quantum are trading almost six per cent lower today, currently worth 64 cents each
Quantum technology company Archer Materials (AXE) launched a $3 million share purchase plan to speed up its current work programs today.
The company struck some major success in early May after teaming up with New York-based tech giant IBM. Since signing the deal, Archer shares have skyrocketed to hit their all-time high earlier this week. Over the past year, Archer shares have increased in value by over 700 per cent.
Today, the company is giving shareholders the chance to top up on Archer shares at a nice discount to their market price. The share purchase plan allows shareholders to subscribe for up to $30,000 in new shares at 60 cents each.
This is a 12.4 per cent discount to its last closing price and a 26.4 per cent discount to this week’s all-time high. Of course, given shares traded between 16 and 24 cents for the first four months of this year, today’s price is still a lot more than Archer shareholders are used to.
The company said it opted for a share purchase plan to raise the capital over a broker-sponsored placement in order to give shareholders an opportunity to take advantage of a discount normally reserved for sophisticated and professional investors.
The new cash from the capital raise will be used to fund the development of Archer’s quantum bit processor chip technology, which will be part of the IBM collaboration.
The company said it also will be hiring new staff to speed up its ongoing work programs.
Of course, Archer is also sourcing the materials needed in quantum technology itself through mineral exploration in Australia.
As such, the company said the new funds will also go towards finishing test work at its Franklyn halloysite pilot plant.
Shares in Archer are trading 5.84 per cent lower today as they tiptoe towards the share purchase plan price. In mid-morning trade, Archer shares are worth 64 cents each.