DefenseMetal Additive ManufacturingMoney & Funding

AML3D to establish USA facility in Ohio

Catering to the increasing demand for US defense manufacturing solutions, following its intended AUD $3.9 million capital raise

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AML3D, the manufacturer of ARCEMY industrial metal 3D printers, reportedly intends to establish a standalone, fully operational facility in Ohio, USA, to cater to the increasing demand for advanced manufacturing technology solutions, particularly within the defense industry. To fund the expansion, AML3D will be conducting a non-renounceable rights issue on a 1:3 basis to raise up to AUD $3.9 million at $0.05 per share.

US headquarters and manufacturing hub

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, Pete Goumas, and will build AML3D’s ARCEMY advanced manufacturing systems, fulfill contract manufacturing, alloy testing, and prototyping contracts, and house the company’s sales and operating functions.

Following the 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 for advanced manufacturing technology solutions.

Investing in technology development

AML3D will also invest in its software and technology to maintain the company’s competitive advantage and increase the applications of its WAAM solutions. This investment will include expanding AML3D’s software development expertise and capabilities to build new features that will enhance the ARCEMY platform in both build size and speed.

“In CY2023, the first year of AML3D’s US scale-up strategy, the company secured ~$11.9 million in US defense 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 defense sector, ensure we are best positioned to continue to win US defense contracts, and have a springboard from which to enter the additional US manufacturing sectors we have targeted, including Marine, Oil & Gas and Aerospace,” said Sean Ebert, Managing Director of AML3D. “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 defense 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 to establish USA facility in Ohio - catering to the increasing demand for US defense manufacturing solutions.
AM3D’s ARCEMY machine.

Raising capital

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 (Rights Issue).

Existing shareholders with a registered address in Australia or New Zealand will be offered the opportunity to purchase one new share for every three shares held by them as of 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 an 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.

Application of funds

Utilizing both existing cash and proceeds from the Rights Issue, AML3D will fund the establishment of the company’s US headquarters and manufacturing facility to take advantage of the demand in the US for its advanced manufacturing technology.

In addition, approximately AUD $500,000 will be used to invest in AML3D’s market-leading advanced WAAM technology and ARCEMY platform software. The balance of funds from the Rights Issue will be used to fund working capital, accelerate growth opportunities, and fund offer costs.

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746 composites AM companies individually surveyed and studied. Core composites AM market generated over $785 million in 2023. Market expected to grow to $7.8 billion by 2033 at 25.8% CAGR. This new...

Edward Wakefield

Edward is a freelance writer and additive manufacturing enthusiast looking to make AM more accessible and understandable.

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