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.
