Listed technology firm QR Sciences’ star has continued to rise on the back of several positive announcements.
Listed technology firm QR Sciences’ star has continued to rise on the back of several positive announcements.
The company’s share price has risen about 78 per cent in recent months, coinciding with news it is commercialising its technology and earning revenue.
While QRS shares remain in the more speculative technology sector, they have risen from around 14 cents mid-July and are now trading at around 25 cents after peaking at about 31 cents a month ago.
August was a big month for QR Sciences. It announced the availability of its first commercial product, a Quadrupole Resonance Machine used to detect plastic explosives hidden in passenger luggage.
Also that month the company agreed to sell two QR devices and technical assistance to US airport security systems giant Rapsican Security Products. The devices will be integrated with Rapsican’s x-ray machines, which are used to detect contraband.
QR Sciences also announced it had entered in a memorandum of understanding with the Chinese Institute of Atomic Energy (CIAE) to assist with the development of security screening for the 2008 Beijing Olympic Games.
And a formal consulting agreement was entered into with UK-based NQR consulting – one of the early developers of Quadrupole Resonance (QR) technology.
Earlier this month QR Sciences raised $5 million through an oversubscribed share placement at 27 cents a share and a one-for-two free attaching 40-cent option expiring January 12 2005.
The funds will be used for ongoing working capital. Growth (eG) Capital managed the placement.
Initially developed to detect the presence of particular minerals for the mining industry, QR Sciences’ quadrupole resonance technology passes radio waves through an object, such as a suitcase, returning a unique signature if explosives are present.
QR Sciences chief executive Kevin Russeth said that, while the technology could have other applications, including in the pharmaceutical industry, the security industry remained the current focus.
“Our focus is explosives right now. We’ve got a lot of work to do on that,” he said.
Mr Russeth said QR Sciences would continue to develop partnerships with major international defence and security organisations.
QR Sciences’ restructure is part of a bid to expand its operations within the US.
“Our business model is built to generate revenue from four areas, including licensing, manufacturing, provision of outsource consulting services and funded R&D grants from both the public and private sector,” Mr Russeth said in an ASX statement. “Our expansion into the US will act as a driver on all four of these fronts.”
Mr Russeth said the company also expected to employ additional technical and product support staff along with the restructure of its senior management team to “better align the operational requirements of the company with the later stages of the commercialisation process”.
eG Capital associate director Howard Leibman said he believed that QR Sciences had a high risk-return profile.
“The company has established an extraordinarily strong intellectual property position, to the extent that if QR Sciences’ technology becomes a required component of baggage checking technology, then QRS is ideally positioned,” he said. “In parallel, they have positioned themselves immaculately with key providers to the sector.
“What QRS has done, I believe, has positioned it with all those partners.”
