Amaero International raises $25m for additive metals

Additive manufacturer Amaero International has completed an upsized institutional placement to raise $25 million following strong support from existing institutional shareholders as well as from new Australian and international institutions.

The company will use funds raised primarily to fund the purchase of capital equipment including a second atomizer and improvements to the company’s headquarters in Tennessee, United States (pictured).

Amaero produces alloy and titanium powders for additive manufacturing as well as producing advanced large powder metallurgy components utilised by the defence, space, and aviation sectors.

Following the transaction pro forma cash balance of the company will be approximately $37.2 million to contribute to funding the company’s planned capital investment programme as it ramps up production.

Amaero Chairman and CEO Hank J. Holland said: “Given that investor demand substantially exceeded the initially targeted raise of $20 million, the company elected to upsize the offering to $25 million.

“This capital raising, along with qualification of C103 AM powder and the accompanying offtake and preferred supplier agreement with ADDMAN Group are culminating milestones and position Amaero as the largest capacity and most responsive U.S. domestic producer of C103, refractory and specialty alloy powder for additive manufacturing.”

Amaero initially intended to site its operations in Victoria, but shifted its focus to the US to be closer to its intended customer base.

The company plans to spend $71 million investing in capital equipment and facilities over the next three years to build on its advanced powders manufacturing capabilities.

Of proceeds from this raising, the last to be offered to Australian investors, $12.8 million will go to capital equipment, $10.8 million to fit out the Tennessee facility, and $1.3 million to cover costs of the offering.

Further reading:
Amaero to cut remaining ties with Australia, focus on US
Amaero invests $71 million in additive future

Picture: Amaero International, Tennessee facility