Archer Materials Ltd (ASX:AXE, OTC:ARRXF) will close its share purchase plan (SPP) early after receiving strong support from eligible shareholders to raise A$10 million, double the initial target
The amount raised will be increased under the SPP after the company received commitments well in excess of the initial target.
Archer's board will increase the amount to be raised to A$10 million and anything in excess of this will see SPP applications scaled back.
The SPP will now close at 5:00pm AEDST on Wednesday, October 20, 2021, with results announced on Monday, October 25. SPP shares will be issued two days later on the Wednesday with quotation of the shares to occur the following day.
Use of funds
With the AXE now a fully-fledged technology company the funds will be used to advance its semi-conductor ambitions.
Funds will be used to:
- Progress Archer’s world-first technology development, including its 12CQ chip and Biochip;
- Utilise world-class technology development infrastructure and facilities, R&D, people and IP to support pre-market development of Archer’s technologies;
- Protect intellectual property assets (eg patents and international patent applications) underpinning the company’s technology;
- Establish and strengthening new and existing commercial partnerships in Australia and abroad; and
- For general working capital requirements.
Pure play deep tech
The completion of the sale of Archer’s mineral exploration business to iTech Minerals Ltd, means AXE is now a pure-play deep technology company.
iTech successfully completed its initial public offering and expect to list on ASX sometime in the last week of October 2021.
In-line with its strategy, Archer will now seek to change its GICS code from ‘Materials - Diversified Metals & Mining’ to ‘Information Technology - Semiconductors’, which is required in the process to have the company admitted to the S&P/ASX All Technology Index.