What is a trading halt?
Archer has been granted a trading halt until the 5th May (or until an announcement is released to the market). This is to allow time to finalise and execute a material agreement regarding its quantum computing chip technology. A trading halt is a temporary suspension of trading for securities typically enacted in anticipation of a news announcement, to correct an order imbalance, as a result of a technical glitch, or due to regulatory concerns. In this case we expect the company are worried about hype and investors pushing the stock to unsustainable highs, speculating on the outcome of this agreement. The halt comes shortly after releasing its March quarterly results.
What do Archer do?
Archer is a materials developer for quantum computing, biotechnology and lithium-ion batteries. In December 2018 they licensed a room temperature, carbon-based spin qubit technology called 12CQ from the University of Sydney and are developing a quantum device based upon this technology. Read more here. The business is highly focussed on the commercialisation of its technology and is keen in its investor presentations to show the potential addressable market:
Before you start rushing to buy the stock (once its “un-halted”), it’s worth reminding our readers that Archer i) aren’t a pure play quantum computing company and ii) they generated next to no revenue last year. This is a speculative play on research and development. Nothing wrong with that, but know the risks.
Archer’s progress towards single qubit quantum measurements is apparently “on-track”. In the Quarter, Archer commercially advanced the 12CQ room-temperature qubit processor
technology by commencing the second-stage of development focusing on completing
the quantum measurements required to build a working chip prototype. This involves undertaking complex quantum measurements using equipment and facilities available at École Polytechnique Fédérale de Lausanne (“EPFL”) in Switzerland.
“The measurements to be performed at EPFL will complement the work undertaken at the University of Sydney Research and Prototype Foundry”
The business recently provided an opportunity for shareholders and investors to submit questions they had about ‘all things quantum computing’ to the company to be answered by Archer’s in-house quantum technology expert, Dr Martin Fuechsle. See below:
Disclaimer: writers for The Quantum Daily may hold securities discussed in content published on the website. This article is not a recommendation to buy or sell securities.