AML3D secures A$30 million to expand manufacturing and global footprint

AML3D Limited (ASX: AL3), a leader in advanced additive manufacturing via wire arc technology, has secured A$30 million (about $20 million USD) through a two-tranche institutional placement, issuing approximately 157.9 million fully paid ordinary shares at a price of A$0.19 per share. This marks a pivotal moment for AML3D as it prepares to scale operations, accelerate growth, and strengthen its global presence. VoxelMatters recently explored the potential of large-format metal AM technologies, such as WAAM, in the latest Metal AM Focus 2024 eBook.

The placement, which saw overwhelming interest from existing shareholders and new institutional investors, positions AML3D to leverage growing opportunities in the defense, aerospace, and energy sectors. The funds raised will support the company’s aggressive expansion plans, particularly in the United States, while enabling its entry into European markets and driving technological innovation.

At the heart of this expansion is the United States, where AML3D intends to invest A$12 million to more than double the manufacturing capacity of its Stowe, Ohio Technology Centre. This strategic move aligns with increasing demand from the US Department of Defense, particularly following a recent US$951 million contract awarded to the Blue Forge Alliance (BFA). BFA, a key partner, is tasked with strengthening the US Navy’s Submarine Industrial Base (SIB), which is expected to benefit significantly from AML3D’s advanced ARCEMY manufacturing systems.

In Ohio, the company plans to install additional ARCEMY systems to meet rising production needs while establishing a second facility to support system assembly and customer requirements. To facilitate this growth, AML3D will expand its engineering and technical workforce, ensuring the seamless production of parts and delivery of systems. This expansion reflects AML3D’s commitment to addressing the growing demand for innovative manufacturing solutions across the US defense and energy sectors.

Beyond the US, AML3D is looking to establish a strong foothold in the European market. With an initial investment of A$5 million, the company aims to create a dedicated technology center in the region. This facility will showcase the capabilities of the ARCEMY® system while serving as a production hub. AML3D is optimistic about replicating its US market success in Europe, particularly against the backdrop of the AUKUS trilateral agreement, which underscores the importance of collaborative defense manufacturing efforts among Australia, the UK, and the US.

Investment in research and development remains a cornerstone of AML3D’s strategy. Approximately A$3 million from the capital raise will be allocated to advancing its Wire-Arc Manufacturing Technology, expanding its applications, and maintaining its competitive edge in the global market. These R&D efforts will support the company’s broader goal of providing innovative solutions for the defense and aerospace industries.

The capital raise also reflects investor confidence in AML3D’s leadership and growth potential. Sean Ebert, AML3D’s Managing Director, described the successful equity placement as a milestone that strengthens the company’s ability to capitalize on substantial market opportunities. He highlighted the surge in demand for additive manufacturing, particularly within the US defense sector, as a key driver of the company’s expansion. Ebert also emphasized that the funding would allow AML3D to enhance its software and technology offerings, ensuring sustained growth and shareholder value creation.

In addition to its defense-related initiatives, AML3D is exploring opportunities in the energy and aerospace sectors. The company’s existing manufacturing license agreement with Boeing, for example, underscores its potential to support aircraft component production. Similarly, AML3D’s position within the US Navy’s supply chain and its role in reshoring manufacturing capabilities align with broader efforts to enhance supply chain resilience.

The placement was conducted in two tranches: the first raised A$17.9 million under AML3D’s existing placement capacity, while the second, subject to shareholder approval, aims to raise an additional A$12.1 million. The placement price represented a 17.4% discount to the last traded price, ensuring accessibility for a broad range of investors. Bell Potter Securities and Shaw and Partners Limited served as joint lead managers and bookrunners for the transaction.

This infusion of capital will enable AML3D to not only scale its operations but also explore new markets and opportunities. With its expanded manufacturing capabilities in the US, a planned entry into Europe, and a focus on technological innovation, the company is well-positioned to lead the additive manufacturing industry. By leveraging its ARCEMY systems and strong partnerships, AML3D aims to deliver cutting-edge solutions to some of the world’s most demanding industries.