Highlights

• Archer Materials received commitments for a AUD 7.0 million two-tranche placement.

• The company also launched a share purchase plan targeting up to AUD 3 million.

• Funds will support Archer’s three-year strategic agreement with IonQ and quantum computing initiatives.

• Eligible shareholders can apply for up to AUD 30,000 worth of new shares at AUD 0.27 per share.

• Placement and SPP participants may receive one free attaching option for every new share, subject to shareholder approval.

Archer Materials Limited (ASX:AXE) has completed a AUD 7.0 million two-tranche placement and announced a share purchase plan targeting up to AUD 3 million, as the company moves to support its recently announced strategic agreement with global quantum computing company IonQ. The funding package is intended to assist Archer in implementing its quantum computing initiatives, including access to the IonQ Quantum Cloud, while also supporting its broader technology development programs and working capital requirements.

Archer Materials shares were trading at AUD 0.30 during the morning session on 3 July 2026, down 1.61% for the day. Despite the daily decline, the stock remains up 17.31% over the past year. The latest update is centred on Archer’s capital raising plans and its strategic direction in quantum computing, rather than being directly linked to the share price movement.

Archer Secures AUD 7 Million Placement

Archer Materials said it had received binding commitments from institutional and sophisticated investors, along with the Board and Management, for a non-underwritten two-tranche placement.

The placement will raise AUD 7.0 million before costs through the issue of approximately 25.9 million new fully paid ordinary shares at AUD 0.27 per new share.

The capital raising follows Archer’s earlier announcement on 1 July 2026 regarding its strategic agreement with IonQ. The company said the funding will support the implementation of that agreement and help advance its plan to establish sovereign quantum computing capability in Australia.

The offer price of AUD 0.27 per new share represents a 12.9% discount to Archer’s last closing price of AUD 0.310 on Tuesday, 30 June 2026, and a 13.6% discount to the five-day volume weighted average price of AUD 0.312 per share.

Two-Tranche Structure Includes Board and Management Participation

The placement will be completed in two parts.

Under Tranche 1, Archer will raise AUD 6.86 million before costs through the issue of approximately 25.4 million new shares. These shares will be issued under the company’s existing placement capacity under ASX Listing Rule 7.1.

Tranche 2 will raise AUD 0.14 million before costs through the issue of approximately 0.52 million new shares to certain investors, including Directors and Management. Director participation remains subject to shareholder approval at an Extraordinary General Meeting expected to be held around mid-August 2026.

The company stated that Directors and Management will participate on the same terms and at the same offer price as other investors under the Tranche 1 placement and the SPP.

New shares issued under the placement will rank equally with Archer’s existing fully paid ordinary shares.

SPP Offers Eligible Shareholders Access at Same Price

In addition to the institutional placement, Archer intends to undertake a non-underwritten share purchase plan for eligible shareholders in Australia and New Zealand.

The SPP will be offered at the same price as the placement, AUD 0.27 per new share, and is targeting up to AUD 3 million before costs.

Eligible shareholders are those with a registered address in Australia or New Zealand as at 7:00pm Sydney time on Thursday, 2 July 2026. These shareholders will be invited to apply for up to AUD 30,000 worth of new shares.

Archer said it retains the right to accept oversubscriptions or scale back applications, in whole or in part, at its discretion, subject to ASX Listing Rules. This means the SPP may raise more or less than the targeted AUD 3 million.

The SPP is scheduled to close on Monday, 3 August 2026. Further details will be provided in the SPP offer booklet, which is expected to be released on the ASX and sent to eligible shareholders in the coming week.

Attaching Options Form Part of the Offer Structure

Participants in the placement and SPP will also have the opportunity to subscribe for one free unquoted attaching option for every one new share allocated.

These attaching options will expire on 30 June 2029 and will have an exercise price of AUD 0.35 per option.

However, the issue of attaching options under both the placement and SPP remains conditional on shareholder approval at the Extraordinary General Meeting expected around mid-August 2026.

SPP participants will receive the attaching option offer under a separate prospectus, while Bell Potter Securities Limited, which acted as sole lead manager and bookrunner, is also expected to receive approximately 5.6 million unquoted options on the same terms, subject to shareholder approval.

IonQ Agreement Anchors Quantum Computing Strategy

A key purpose of the capital raising is to support Archer’s three-year strategic partnership with IonQ.

Under the agreement, Archer will gain access to the IonQ Quantum Cloud to develop quantum algorithms, applications and solutions.

The company said the arrangement is designed to accelerate its strategy to establish sovereign quantum computing capability in Australia.

According to Archer, the funds raised through the placement and SPP will support IonQ client and project development, quantum machine learning development and qubit development.

Chief Executive Officer Dr Simon Ruffell said the funding positions Archer to execute the strategic agreement with IonQ and advance its other projects to the next stage. He added that the company can now commence its plan to establish sovereign quantum computing capability in Australia.

Funds to Support Quantum, Biochip and Materials Programs

Archer outlined several planned uses for the funds raised through the placement and SPP.

The capital will be applied toward quantum programs, including IonQ client and project development, quantum machine learning and qubit development.

The company will also continue expenditure on its biochip and advanced materials technologies.

In addition, part of the proceeds will be allocated to general working capital expenses.

This indicates that while quantum computing remains the central focus of the latest funding update, Archer is also maintaining investment in its broader semiconductor-related technology portfolio.

Indicative Timetable Outlines Key Dates

Archer provided an indicative timetable for the placement process.

The capital raising announcement was made on Friday, 3 July 2026, with the trading halt lifted on the same date.

Settlement of new shares under the Tranche 1 placement is expected on Wednesday, 8 July 2026, followed by allotment on Thursday, 9 July 2026.

The Extraordinary General Meeting is expected around mid-August 2026. Settlement and allotment of Tranche 2 placement shares and attaching options are also expected around mid-August 2026, subject to shareholder approval.

The company noted that the timetable remains indicative and may change at Archer’s discretion, subject to applicable laws and ASX Listing Rules.

About Archer Materials

Archer Materials operates as a quantum technology company within the semiconductor industry.

The company is developing advanced semiconductor devices, including chips relevant to quantum computing, sensing and medical diagnostics.

Archer uses global partnerships to develop these technologies for potential deployment across multiple industries.

Its latest agreement with IonQ adds a quantum cloud access pathway to its development strategy, while the new capital raising is intended to support execution of the company’s near-term quantum and technology programs.

What This Means for Investors?

Archer Materials’ latest update places funding and execution at the centre of its quantum technology roadmap. The AUD 7.0 million placement, combined with the planned AUD 3 million SPP, provides capital for the company’s IonQ agreement, sovereign quantum computing initiatives, biochip development, advanced materials technologies and working capital. Investors may watch the upcoming SPP process, the mid-August 2026 shareholder approvals, and the early implementation of Archer’s IonQ-linked quantum programs as the next key milestones.