Why the Archer Materials (ASX:AXE) share price is plunging 15% today

Securing intellectual property patents can be highly lucrative, when successful.
The post Why the Archer Materials (ASX:AXE) share price is plunging 15% today appeared first on The Motley Fool Australia. –

The Archer Materials Ltd (ASX: AXE) share price is falling hard today, down 15% in early afternoon trade to $1.75 per share.

Shares are now down 34% since Monday’s all-time closing high of $2.67 per share.

The materials technology company develops advanced semiconductor devices, with the goal of using these in quantum computing systems at room temperature.

Today, Archer responded to media speculation that it wasn’t fully transparent with its market communication surrounding a patent application with IP Australia.

What media related patent issues is Archer responding to?

The Archer Materials share price could be under pressure due to media speculation about its patent application in Australia.

Yesterday the Australian Financial Review wrote:

Sharemarket bolter Archer Materials did not disclose to investors that its patent application for a novel quantum computing chip was knocked back by IP Australia on February 11, after the government patent body objected to multiple claims in the application.

In an ASX release this morning, Archer responded to that assertion, which relates to its CQ quantum computer chip.

The company said that the term “knocked back”, used in the AFR article, implies its application had been rejected.

That’s not the case, according to Archer:

The patent application has not been rejected and it is still active. The formal term for the status of the 12CQ chip related patent application in Australia remains filed and, importantly, the patent application has not lapsed and has not been refused.

Archer went on to say, “It is not unusual for patent examiners in different countries to issue examination reports and request clarifications and additional information.”

The company has until 11 February 2022 to IP Australia with the requested additional information and clarifications.

Archer added:

The overarching inference of the media article is that Archer failed to comply with its statutory and Listing Rule obligations by not disclosing information to the market that it was required to disclose. For the reasons outlined above, namely the routine nature of such objections, this is incorrect.

Archer Materials share price snapshot

Though Monday would have been an inopportune time to buy shares, the Archer Materials share price remains a standout performer on the All Ordinaries Index (ASX: XAO).

Over the past 12 months shares are up 283%, compared to a gain of 23% on the All Ords.

Year-to-date the Archer Materials share price continues to strongly outperform, up 241% in 2021.

The post Why the Archer Materials (ASX:AXE) share price is plunging 15% today 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 sinking 19% on Tuesday
Archer Materials (ASX:AXE) share price surges 30% on patent update
The Archer Materials (ASX:AXE) share price is up 87% in a month
Why the Archer Materials (ASX:AXE) share price rocketed 13% today
The Archer Materials (ASX:AXE) share price is up 60% in a month to a record high

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!