At the time of writing the AnteoTech Ltd [ASX:ADO] share price trades at 10.5 cents, up 5%.
AnteoTech announced the company received a cash refund of $1,195,634, under the Federal Government’s research and development tax incentive scheme.
Source: Optuma
AnteoTech develops COVID-19 test
The COVID-19 pandemic saw companies worldwide turn their attention to finding a solution for the problem.
AnteoTech have developed a rapid test to do exactly that.
The company announced recently that all development processes and internal testing procedures for the high-sensitivity COVID-19 Antigen Rapid Test (ART) are complete.
The company declared a ‘design freeze’ for the product.
The final design of the test is less than one-minute analysis time in the reader.
The planning of clinical trials with Victorian Infectious Diseases Reference Laboratory — a unit of Doherty Institute — is underway and on track for December 2020 commencement.
The injection of cash combined with the proceeds from the conversion of underwritten options gives the company a strong cash position of over $6 million.
The funds will be used for new R&D programs.
The race to contain COVID-19
Cases of the virus in Australia are slowing, with some states reporting to be COVID-19 free.
The northern half of the world is still in trouble, however. Cases in the US and Europe keep rising, making the demand for rapid and accurate tests huge.
Source: Optuma
From the low in March the ADO share price moved up 1,300% to the all-time high of 14 cents.
Retracing 50% before moving up to where it trades at the time of writing.
The fall took place on decline volume, this combined with the 50% retracement is a strong sign of confidence.
If the move up can be sustained, then the levels of 11 and 14 cents may be broken.
If a fall back happens, then 9 cents may come into play.
AnteoTech holds a market of $137.76 million. With the new test looking promising, the company looks set to get bigger. Could be a good share to put on a watchlist.
Regards,
Carl Wittkopp,
For Money Morning
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