The Archer Materials Ltd (ASX: AXE) share price is edging higher following an update on its Share Purchase Plan (SPP).
At the time of writing, the materials technology company's shares are up 1.88% to $1.63.
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Share Purchase Plan finishes early
According to its release, Archer advised it has successfully completed its SPP, following overwhelming support from shareholders.
A number of valid applications were received, totalling in excess of the original $5 million offer. However, management decided to increase the SPP's offer size to approximately $10 million. This will result in around 6.9 million new ordinary shares being added to the company's registry.
The issue price listed at $1.45 for each share, reflecting the same price paid by investors under the equity placement.
Archer raised $15 million in a non-underwritten placement earlier this month, with 10.3 million shares issued.
The $25 million from both the equity raising will be used on executing Archer's strategic focus. This includes:
- Progressing its world-first technology development, including its CQ chip and Biochip
- Utilising technology development infrastructure and facilities, R&D, people, and IP, to support pre-market development of the company's technologies
- Protecting intellectual property assets such as patents and international patent applications
- Establishing and strengthening new and existing commercial partnerships in Australia and abroad
- General working capital
The SPP results will be announced on 25 October, with issue and allotment following on 27 October.
Quick take on Archer
Founded in 2007, Archer is a technology company developing advanced semiconductor devices. This encompasses chips that can be used in quantum computing and medical diagnostics.
Archer's flagship development, the CQ chip, is a world-first technology that could allow for quantum computing powered mobile devices.
About the Archer share price
It's been an interesting year for Archer shares, having moved in circles until the start of July. Over the last 12 months, the company's share price has increased by more than 230% and is up 200% year-to-date.
On valuation grounds, Archer commands a market capitalisation of roughly $390 million, with approximately 239 million shares outstanding.
