AML3D raises A$30 million for expansion

AML3D completed a two-tranche institutional placement raising approximately A$30 million. The placement will result in the issuance of approximately 157.9 million new fully paid ordinary shares each at an issue price of A$0.19 per new share. The placement received overwhelmingly strong support from existing shareholders and a number of new institutional investors, with demand to participate well in excess of funds that AML3D sought to raise. AML3D’s Managing Director, Sean Ebert, commented “This successful equity placement marks another significant milestone for AML3D with investor demand being extremely strong. We are now in an excellent position to continue to rapidly advance our US expansion from Ohio, to take advantage of the demand from the US Department of Defense, whilst exploring the European markets by leveraging the backdrop of AUKUS.” AML3D has been guided to expect significant growth in US demand following the award, by the US Department of Defense, of a US$951 million U.S. Department of Defense contract to Blue Forge Alliance (‘BFA’) to boost the US Navy’s Submarine Industrial Base (‘SIB’). BFA is a US nonprofit, neutral integrator, tasked with the strengthening and sustainment of the US Navy’s SIB, including scaling additive manufacturing capacity and capability. In addition, the company is seeing a range of opportunities within the US Energy sector as well as in the Defense Aerospace sector specifically as part of the Manufacturing Licence Agreement with Boeing for the manufacture of aircraft parts. AML3D has already supplied six ARCEMY systems, fulfilled several alloy testing and component contracts and has an open-ended Manufacturing License Agreement in place with BFA. The company expects that a significant proportion of the recent award of US$951 million will be directed to accelerating adoption of advanced additive manufacturing technology, including AML3D’s ARCEMY® systems, within the US Navy’s SIB. To meet this demand AML3D will invest A$12 million to more than double the manufacturing capacity of its US Technology Centre in Stowe, Ohio. The enhanced Ohio facility will build and supply AML3D’s ARCEMY advanced manufacturing systems and fulfil contract manufacturing, alloy testing and prototyping contracts under the leadership of Pete Goumas, president of US Operations. The company will initially install up to four additional ARCEMY systems for the production of manufactured parts into the existing US facility whilst looking to lease a second facility for the assembly of ARCEMY systems for sale to customers and to the support the rollout to the US Navy defence contracting supply chain. In addition, the company will be hiring additional engineering and technical operators to support the assembly of systems, ongoing customer support requirements as well as the production of parts. AML3D will also invest up to A$3 million to continue developing its software and technology to maintain the Company’s competitive advantage as a provider of a market leading advanced additive manufacturing solution. AML3D’s R&D program is also designed to expand the range of applications for its advanced additive manufacturing technology to help support the US and global defense sectors. AML3D’s Chief Executive Officer, Sean Ebert, commented “The decision in September by the US Department of Defense to award Blue Forge an additional US$951 million of funds is expected to help accelerate the adoption of AML3D’s ARCEMY technology. My understanding is a reasonable proportion of the new funds will be directed to scaling up and integrating additive manufacturing into the US Navy’s Submarine Industrial Base. The completion of this A$30 million capital raising provides AML3D with the funds to scale up our US operations to maximise this opportunity.  The Placement also allows us to accelerate development of our software and technology to maintain our market leading position in additive manufacturing, to maintain our competitive advantage and drive growth and value creation for our new and existing shareholders.” President of AML3D’s US President, Pete Goumas, said “I’ve been leading AML3D’s US operations for a little over a year now. In that time, we have established a state-of-the-art technology centre and manufacturing facility in Ohio, while continuing to win new contracts. I have recruited some of the best and brightest to build out our technical, sales and service teams. It is really exciting to see this surge in investment into additive manufacturing by the US Department of Defense, particularly into the Submarine Industrial Base where AML3D has been building its presence. The US team is fully primed and ready to rapidly expand our operations and people to meet this new and potentially significant demand for our technology.” AML3D will explore the opportunities within the UK and European markets through establishing a location for one Arcemy system as a production and demonstration system for the market. The company is experiencing similar demand signals as it experienced in its entry to the US market and currently has a bid in for a system to a defence related customer which it expects to secure. The base in Europe will be a showcase Technology Centre for Europe and will be there to initially support the demand we are experiencing from the backdrop of AUKUS. For Editorial Inquiries Contact: Editor Kym Bergmann at [email protected] For Advertising Inquiries Contact: Group Sales Director Simon Hadfield at [email protected]