Archer Materials Ltd (ASX:AXE, OTC:ARRXF) has opened its Share Purchase Plan (SPP) to eligible shareholders today as it looks to raise A$20 million in equity to fund the development and growth of its advanced semiconductor technologies, with a particular focus on the 12CQ quantum computing chip.
As reported on October 4, the equity raise comprises a:
- An A$15 million share placement to sophisticated and professional investors at a price of A$1.45 per share; and
- An A$5 million SPP at a price of A$1.45 per share.
The SPP will close on October 28, 2021, at 5pm, with new shares issued on November 4.
Eligible shareholders can apply online at: https://axespp.thereachagency.com
AXE continues transition
The raise comes as AXE looks to complete its transition from mineral exploration company to deep technology company, which includes the sale of its mineral exploration tenements to iTech Minerals Ltd.
iTech intends to list on the ASX by October 25, 2021.
AXE operates within the semiconductor industry and is developing and commercialising advanced semiconductor devices, including chips relevant to quantum computing and medical diagnostics.
How the funds will be used
Funds raised from the SPP will be used towards:
- Progressing Archer’s world-first technology development, including its 12CQ chip and Biochip;
- Utilising world-class technology development infrastructure and facilities, R&D, people and IP to support pre-market development of Archer’s technologies;
- Protecting intellectual property assets (eg patents and international patent applications) underpinning the company’s technology;
- Establishing and strengthening new and existing commercial partnerships in Australia and abroad; and
- General working capital requirements.
Shares today are 4.14% higher to A$1.51 while the company's market cap before the opening was approximately A$330.2 million.