Insights

Why is the Archer Materials (ASX:AXE) share price halted?

The Archer Materials share price is going nowhere on Friday.
The post Why is the Archer Materials (ASX:AXE) share price halted? appeared first on The Motley Fool Australia. –

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.

The post Why is the Archer Materials (ASX:AXE) share price halted? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Archer Materials right now?

Before you consider Archer Materials, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Archer Materials wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The Archer Materials (ASX:AXE) share price is down 5% on Tuesday
Archer Materials (ASX:AXE) share price soars 29% on US patent
The Archer Materials (ASX:AXE) share price is flying 7% higher today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!