Archer share purchase plan hits the spot
Archer Materials Limited’s (ASX:AXE) Share Purchase Plan (SPP) has received total SPP application funds of nearly $2 million.
All applicants under the SPP will receive shares equivalent to their full application amount, with no scale back, and the 15,327,790 new shares were allotted on Friday, 13 December 2019, with holding statements to be despatched to shareholders on Wednesday, 18 December 2019.
In its last quarterly cash flow report in October, the company forecast that it would have $723,000 in cash and cash equivalents at the end of 2019.
Management is now forecasting to have approximately $2.7 million in cash and cash equivalents available at the end of the year (including the funds raised from the SPP).
As a result of the success of the SPP and the amount of cash available at the end of 2019, the Archer board has decided the company will not use the 30 million share placement facility approved by shareholders at the 2019 AGM and that this facility will expire unused.
As has been the case with Archer Materials, capital raisings often trigger a short-term retracement in share prices.
However, the longer term benefits of a more robust balance sheet should be recognised, and it is worth noting that the company’s shares are up approximately 50% since the start of 2019.
Funds used to progress Advanced Materials Business
The proceeds raised from the SPP will provide Archer with the funding required to progress the company’s Advanced Materials Business, in particular the development of the room temperature quantum computer chip, as well as exploration of the company’s mineral tenements.
Archer provides shareholders with exposure to financial returns from innovative technologies and the materials that underpin them.
The company’s strategy is to build an industry-leading materials technology company that generates maximum value through the commercialisation of assets at various stages of the materials lifecycle.
Archer has strong intellectual property, broad-scope mineral tenements, world-class in-house expertise, a diverse advanced materials inventory, and access to over $300 million of research and development infrastructure.
Archer shows its expertise with biosensor technology
The company had significant success on the development front in 2019, particularly in relation to its graphene-based biosensor technology development.
Archer built a first-phase prototype device to test the printing and performance of graphene inks produced from the inventory of Carbon Allotropes also known as graphene inks.
Commenting on the company’s biosensor development, Archer chief executive Dr Mohammad Choucair said, “We have reached a key development milestone towards commercially exploiting the intellectual property (IP) underpinning the graphene-based biosensor technology.
‘’This achievement provides support for a full patent application that would give Archer exclusive rights to commercially benefit from the IP.
‘’The materials and processes used to build the prototypes are not prohibitively expensive, which is an advantage in the printable biosensor market.”
The high-quality graphene used in the graphene ink formulations is prepared from non-graphitic feedstocks and is available in the inventory of Carbon Allotropes, a wholly owned subsidiary of Archer.
Using in-house alternatives to graphite for processing graphene inks strengthens Archer’s independent IP ownership position.
The quantity and quality of the non-graphitic graphene used is suitable for rapid prototyping and future device integration.
Moving from commercialisation to full patent application
The development focus is on manufacturing a commercially viable graphene-based biosensor technology and the registration of a full patent application protecting the underlying materials technology intellectual property.
This involves optimising ink formulations and their processing methods linked to the provisional patent claims, and identifying transduction methods, bioreceptors, analytes, coupling and assay reagents for the proper function of the biosensor technology.
Archer intends to commercialise the biosensing technology by seeking to establish commercial partnerships, including licensing agreements with highly resourced organisations including biotechnology companies that could allow for product scale, intellectual property transfer, and distribution channels.