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.
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.
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.
For Money Morning
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