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Amaero International (ASX:3DA) is now funded through to commercialisation of defence and aerospace materials – a milestone that’s set to be reached next year, in 2026.
Amaero’s $22 million Institutional Placement (priced at 30 cents) was fully subscribed by Pegasus Growth Capital, the Amaero Board, four lead institutional investors, and a new U.S.-based institutional investor.
Following the capital raise, Regal Funds Management and IFM Investors will join Pegasus Growth Capital and Fidelity International as substantial shareholders.
The 30-cent raise represents a 10.4% discount to the last closing price. The company reports the Placement concludes a series of “six strategic equity capital raises” since May 2022, totalling $98.5 million.
It brings the cash balance to about $41.5 million, in addition to the recent $37.8 million loan promised from the Export-Import Bank of the U.S.
Amaero’s chairman and CEO Hank J. Holland said the raise satisfied a precedent condition of the EXIM Bank loan.
“It fully funds the planned capital expenditures and operations through anticipated EBITDA breakeven in FY2026,” he said.
“This marks a significant milestone for Amaero.
“We are pleased that Regal Funds Management and IFM Investors will join Pegasus Growth Capital and Fidelity International as substantial investors and we are pleased to add a US institutional investor.
“With the support of our stakeholders, we continue to focus on our strategic positioning as the largest capacity and most responsive US domestic producer of C103, refractory, and specialty AM powders for additive manufacturing.
“And, our pioneering PM-HIP manufacturing of large near-net-shape parts provides an
important substitute for castings and forgings.”
About $10.5 million will fund equipment purchases, $10.4 million will pay for fit-out and improvements at the Tennessee plant, and the rest will cover raise costs.
“We have taken bold and deliberate action to address critical gaps in the United States’ supply chain, and, to create a more resilient and more scalable domestic manufacturing capability for mission-critical defense, space and aerospace applications,” Holland said.
“Our strong balance sheet, first mover advantage and differentiated capability, coupled with the United States’ priority initiatives to re-shore, re-build and scale industrial base capabilities creates an enduring long-term opportunity for Amaero and its shareholders.”
Amaero last traded at 33.5 cents. It has a market cap above $205 million.
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