AML3D announced it intends to establish a standalone, fully operational facility in Ohio to increase the company’s capacity to take advantage of the strong and growing demand in the US for advanced manufacturing technology solutions, notably within the US Defence industry. To fund the expansion, AML3D will be conducting a non-renounceable rights issue on a 1:3 basis to raise up to $3.9 million at $0.05 per share.
The Ohio-based manufacturing facility will house AML3D’s US headquarters and operating facility. The US facility will be led by the recently appointed President of US Operations, Mr Pete Goumas and will build AML3D’s ARCEMY advanced manufacturing systems; fulfill contract manufacturing, alloy testing and prototyping contracts and house AML3D’s US sales and operating functions.
Following successful completion of the capital raise AML3D will be positioned to rapidly scale up its US employee base to meet the strong and growing demand in the US for advanced manufacturing technology solutions.
AML3D will also invest in its software and technology to maintain the Company’s competitive advantage and increase the applications of its Wire-Arc Additive Manufacturing solutions, particularly in support of the US Defence sector. This investment will include expanding AML3D’s software development expertise and capabilities to build out new features that will enhance AML3D’s ARCEMY platform in both build size and speed and maintain its position as a market leading advance additive manufacturing solution.
AML3D Managing Director Sean Ebert said, “In CY2023, the first year of AML3D’s US scale up strategy, the Company secured ~$11.9 million in US Defence contracts alone and we continue to see surging demand in the US for our technology. The completion of this capital raising will provide the funds to establish a US manufacturing and US national sales team in Ohio to ensure we can take full advantage of this surging demand. Our Ohio based facility will offer greater support to the US Defence sector, ensure we are best positioned to continue to win US Defence contracts and have a springboard from which to enter the additional US manufacturing sectors we have targeted, including Marine, Oil & Gas and Aerospace. A secondary but important use of the funds to be raised is for investment to continue to develop our software and technology. Our success to date has been built around AML3D’s market leading Wire-Arc Additive Manufacturing solutions meeting the needs of the US Defence sector, particularly the US Navy’s submarine industrial base. The continued investment in our technology is designed to maintain that competitive advantage, to drive growth and create long-term value for our existing and new shareholders.”
AML3D will conduct a non-renounceable rights issue on a 1:3 basis to raise approximately $3.9 million (before costs) at an issue price of $0.05 per share. Existing shareholders with a registered address in Australia or New Zealand will be offered the opportunity to purchase one (1) new share for every three (3) shares held by them as at the record date of 8 April 2024. The Rights Issue price reflects an approximately 23.1% discount to the theoretical ex-rights price (TERP) of $0.065 and a 14.3% discount to the 30-day volume weighted average price (VWAP) of $0.07 of the Company’s shares.
The company will apply to ASX for official quotation of the shares issued pursuant to the Rights Issue. Based on the Company’s current issued capital, the maximum number of shares that may be issued under the Rights Issue is 78,517,904.
The offer is scheduled to open on 11 April 2024 and close on 9 May 2024. Subject to the Listing Rules, the Directors reserve the right to extend the closing date for the offer at their discretion. Should this occur, the extension will have a consequential effect on the anticipated date of issue of the new securities. The Company has decided that it is unreasonable to make the offer to shareholders who have a registered address in a country outside of Australia or New Zealand, having regard to the number of shareholders in such places, the number and value of the new shares they would be offered and the substantial costs of complying with the legal and regulatory requirements in those jurisdictions.
If after the closing date, there is a shortfall under the rights issue, the Board may in its discretion, place the shortfall with existing shareholders, institutions and other prospective investors in accordance with the ASX Listing Rules. Provision will be made for eligible shareholders to apply for additional shares beyond their entitlement on the Entitlement and Acceptance Form, which is expected to be despatched on 11 April 2024.
For Editorial Inquiries Contact:
Editor Kym Bergmann at kym.bergmann@venturamedia.net
For Advertising Inquiries Contact:
Director of Sales Graham Joss at graham.joss@venturamedia.net
