It’s been a busy month for nanotech stock AnteoTech Ltd [ASX:ADO].
As I discussed earlier in April, the company has secured some big wins. Including its COVID-19 Antigen Rapid Tests, and the recently announced ‘Super Anode Project’.
Together, these two market opportunities could prime this tiny stock for huge success.
At least, that’s certainly the goal…
And as of Friday’s trading session, the ADO share price has closed higher once more. Ending the session at 42 cents per share and capping off a stellar year-to-date run.
But that has all been put on hold as the stock enters a trading halt.
So, let’s dig deeper into the details…
Battery partnerships already leading to market opportunities
The reason for AnteoTech’s surging share price on Friday was due to its latest update on the battery collaboration. Cryptically divulging that some of its anonymous ‘collaborators’ have already become quite intrigued by AnteoX.
As management notes:
‘AnteoTech has received confirmation from Collaborator 8 of the enhanced electrochemical performance resulting from the application of AnteoX (AnteoTech’s Cross-Linker Additive) in a high silicon content lithium-ion anode.
‘The results mirror those achieved by AnteoTech when using Collaborator 8’s binder in testing with silicon anodes as reported in the Quarterly Activities Report for period ending 31 December 2020.’
So it seems they’re off to a flying start in terms of development.
But more importantly, AnteoTech states that these findings prompted an ‘immediate commercialisation discussion’, with both parties clearly keen to bring these technologies to market.
Delivering what may be a game-changing solution for the huge lithium-ion battery market.
For that reason, investors obviously got excited about this prospect. Driving the share price higher on Friday, before trading closed for the week.
And while there is certainly a lot we still don’t know about these discussions and developments, AnteoTech has promised more updates will come in time.
Until then, management isn’t going to let this time in the spotlight pass them by. With the stock entering a trading halt yesterday in preparation for a capital raising. No doubt looking to capitalise on the strong share price gains of late, and buzz surrounding the stock.
As for how big, and whether retail shareholders will be involved, no one knows just yet.
AnteoTech has yet to release the key details of this capital raise but has stated that it should divulge the info by tomorrow morning at the latest.
So investors should definitely keep an eye out for that.
What’s next for AnteoTech?
Capital raise aside, the big thing to watch when it comes to this stock is more details about this battery development.
I don’t want to rule out the potential of the COVID-19 testing of course, but it seems far less exciting than these lithium-ion anode breakthroughs. At least in terms of its commercial reach and addressable market.
Again, nothing is for certain as we don’t have all the details but what little AnteoTech has shared seems promising.
For that reason, this is a highly speculative stock. Especially for its $766 million market cap.
But these early investors are clearly lapping up the potential. Expecting management to turn these exciting developments into proper long-term revenue and profits.
As for whether that will actually be the case, well, only time will tell.
If you’re willing to accept this very high-risk outlook, then AnteoTech may be worth checking out.
If you’re after stocks with a little more value, then I’d suggest looking elsewhere. And you can start with our list of four small-caps that have a little more substance to them. Companies that have been somewhat overlooked compared to the AnteoTechs of the ASX.
For more info, including the names of those four stocks, click here.
For Money Morning