- Archer Materials (AXE) has closed its share purchase plan (SPP) after receiving applications totalling more than double its $3 million target
- The company received applications for over $6.3 million worth of shares at an issue price of 60 cents each
- The board has decided to accept all valid applications and 10.6 million new SPP shares will be allotted next Tuesday
- Archer Materials is trading 0.85 per cent higher for 59 cents per share
Archer Materials (AXE) has closed its share purchase plan (SPP) after receiving applications totalling more than double its $3 million target.
The company launched the SPP last month offering shares at an issue price of 60 cents each, representing a 9.1 per cent discount to the five-day volume-weighted average share price.
In total, the oversubscribed SPP drew in applications for $6.363 million worth of shares. The Archer board has decided to accept all valid applications and will allot 10.6 million new SPP shares next Tuesday, June 30, 2020.
The funds will enable Archer to accelerate its current work programs and, at a time when many businesse are contracting, to hire additional staff.
New staff will work on the development of human health biosensor technology, and funds will also be used to secure the relevant patents.
Additionally, cash will go towards the development of Archer’s CQ qubit processor chip technology and its collaboration with IBM.
Furthermore, some funds are earmarked for the completion of test work at the Franklyn halloysite pilot plant and a resource drill-out after successful trials of the halloysite product by potential customers.
Finally, Archer will use some of the funds to identify new technologies for inclusion in the Reliable Energy vertical.
Archer Materials is trading 0.85 per cent higher for 59 cents per share at 12 pm AEST.