The Archer Materials Ltd (ASX: AXE) share price is frozen today as the company prepares to release news of a capital raise.
The technology company creates advanced semiconductor devices for quantum computing.
It requested a trading halt prior to the market opening on Friday.
The Archer share price finished yesterday’s session trading at $1.73 and there it will remain until the company either releases its expected announcement or the market opens on Tuesday.
Let’s take a closer look at Archer Materials and its share price’s freeze.
Why is Archer frozen on Friday?
The Archer share price has been halted today ahead of the release of news of a capital raise.
While it’s impossible to say exactly how much the company will be raising and what the cash will be put towards, here’s what Archer has planned for financial year 2022:
Right now, the company is working on its 12CQ chip and its less developed biochip. It plans to continue developing its technology in the current financial year. It will be employing more staff to do so.
Archer has previously acknowledged that intellectual property protection and patents are crucial to its future. It will be pushing to receive more of the protections in financial year 2022.
Archer announced it has received a patent for its 12CQ chip in the United States last week. The Archer share price gained 4.4% on the back of the news.
Over financial year 2021, Archer recorded a net loss of around $6.6 million. As of June 30, the company had around $6.2 million of cash in its coffers and no corporate debt.
The last time Archer underwent a capital raise was in May 2020.
Then, the company raised around $6.4 million through a share purchase plan which saw shares in the company offered for 60 cents apiece.
The share purchase plan was significantly oversubscribed. The company accepted all applications despite only targeting a $3 million capital raise.
The funds went towards funding Archer’s work programs and additional staff.
Archer share price snapshot
The Archer share price has been performing well lately.
It has gained 233% since the start of 2021. It is also 240% higher than it was this time last year.