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AML3D Limited a leading additive manufacturer using the special wire arc technology, today announced the successful placement of two tranches of A$30 million or approximately USD 20 million into the company’s coffers. The issue consisted of about 157.9 million fully paid ordinary shares at A$0.19 each. It represents a premier milestone in the growth strategy of the company. Capital influx will be used to scale up operations, enhance development, and drive expansion into global markets like the United States and Europe.
The placement received high interest from both current and new institutional investors, indicating belief in the future prospects of AML3D. The funds raised will mainly go into scaling up its manufacturing capacity and include defense, aerospace, and energy industries. Of the funds, A$12 million will aid AML3D’s Stowe, Ohio Technology Centre, where the company intends to double its manufacturing capacity. This ramp-up is very important in order to meet rising order from the U.S. Department of Defense, among others. The company’s partner, the Blue Forge Alliance (BFA), just won a US$951 million contract to upgrade the US Navy’s Submarine Industrial Base (SIB). AML3D’s advanced ARCEMY systems are likely to be used for this effort and more ARCEMY units will be deployed in Ohio, as production demand rises. Besides this, the company is establishing another facility in Ohio for system assembly and customer support and hiring more engineers and technical staff to push the production.
In addition to expanding its operations in the United States, AML3D has another ambition with regard to the European market. The company will invest A$5 million to open a European technology center, where it will display its ARCEMY system and consolidate this facility as a manufacturing center. AML3D is quite hopeful that what worked in the United States will repeat in Europe, where defense collaboration between Australia, the UK, and the U.S. through the AUKUS agreement opens new channels of manufacturing partnerships.
Of the funds, A$3 million will also be set aside for R&D to further improve AML3D’s Wire-Arc Manufacturing Technology. A solid investment in R&D, by expanding the applications of the technology and keeping the company at the forefront of the global market as per demand on the grounds of the defense and aerospace industries.
Sean Ebert, AML3D Managing Director, remains positive about the future of the company as the funding will support the exploitation of large market opportunities, especially within the US defense sector. According to him, the company will benefit greatly from the swift demand being experienced for additive manufacturing, which includes in the defense sector.
In addition to its applications in defense, AML3D is identifying opportunities in the energy and aerospace sectors. Through its partnership with Boeing, for instance, the company stands to support aircraft component manufacturing, and in a nod to reshoring manufacturing capabilities and building resilience in supply chains, it can be said to align with the U.S. Navy.
The placement was executed in two tranches, with the first tranche raising A$17.9 million through the company’s existing placement capacity, and the second will raise an additional A$12.1m subject to shareholder approval. The placement price of 3cps reflects a 17.4% discount to the last traded price to enable placement to a broad range of investors. Joint lead managers and bookrunners for the placement are Bell Potter Securities and Shaw and Partners Limited.
With the fresh funding, AML3D is now ready to scale its operations and enter new markets, leveraging its state-of-the-art ARCEMY system and strong partnerships to deliver a next-generation solution for some of the most demanding industries on the planet. The company is well-positioned to lead the additive manufacturing space, particularly in the defense, aerospace, and energy sectors, in the ongoing process of innovations and globalization.
source: voxelmatters
