Archer Materials Limited is making moves to help the firm go all-in on quantum, according to a statement from the company.
Headquartered in Australia, the company reports it has signed a share sale agreement with private company iTech Minerals for the sale of all of the subsidiary companies that hold Archer’s mineral tenements.
This move will allow the firm to concentrate on its deep tech business. According to the statement, the sale of the subsidiary companies is another step in Archer’s strategy of monetizing its noncore mineral exploration assets to fund and grow the Company’s advanced materials business, in particular the development of its 12CQ room temperature quantum computing chip and the A1 Biochip.
“The sale of our remaining tenements to iTech is the last step in this process, and we are now fully focussed on the growth of our advanced materials business.”
Archer Executive Chairman Greg English said the move marks the simplification of the company’s business, which is a materials technology company developing innovative deep tech focused on quantum computing, biotechnology and reliable energy.
“For the past year, we have been regularly informing shareholders and investors of our desire to sell our mineral tenements and simplify our business model,” said English. “The sale of our remaining tenements to iTech is the last step in this process, and we are now fully focussed on the growth of our advanced materials business. The simplification of our business model and the sharpening of our focus on our Advanced Materials business should help the company to attract interest from technology focussed investors and businesses.”
Upon completion of the sale of the three wholly-owned subsidiary companies, Archer will no longer hold any mineral exploration licenses, mining leases or any other type of mineral tenement. However, Archer will keep the 2.0% NSR royalty granted on the sale of the Eyre Peninsula tenements to Baudin Minerals Pty Ltd., and the company plans to execute an agreement with the buyer for the future purchase of graphene from the Campoona graphite operations.
When the deal is completed, Archer is expected receive 50 million consideration shares. The Archer board intends to distribute all of the 50 million shared to Archer shareholders by way of a prorata in-specie distribution, subject to the receipt of favorable tax advice and regulatory and Archer shareholder approval, according to the statement.
Archer will hold an special general meeting to seek shareholder approval of the subsidiary companies’ sale and the distribution of the consideration shares.