Titomic announces successful $30 million equity raise supporting US move

Cold spray additive manufacturing company Titomic says it has successfully upped its equity raise from $25 million to $30 million “due to strong investor demand” as its focus continues to shift to the US market. 

As reported earlier this week, Titomic shares went into a trading halt on Monday as the company sought to raise funds – originally reported as $20 million – and announced long-time defence and aerospace executive Jim Simpson will begin as group CEO on January 1. 

In a statement on Wednesday, the company said it had completed an institutional equity placement worth $30 million, supporting its US expansion, “particularly with Titomic’s new operational headquarters and manufacturing facility in Huntsville, Alabama.”

It said binding commitments had been made for a two-tranche placement, which “will result in the issuance of approximately 250 million new fully paid ordinary shares” to investors at a price of $0.12 per new share.

Simpson’s appointment, the new funding and new Alabama headquarters were driven by increased interest from “U.S. Government and defence OEMs” concerning Titomic’s cold spray technology applied to “titanium parts for missiles, aerospace applications, and coating and repair solutions”.

The developments come during a year when Titomic upped sales of its portable low-pressure machines for industrial equipment repair, and entered the US with a sale of its higher-end Titomic Kinetic Fusion System (TKF) to Triton Systems for approximately $1.2 million in May.

This was followed at the beginning of July by the announcement of another sale (of similar value) of a custom-built high-pressure system to the Oregon Manufacturing Innovation Center.

Later that month the company also announced the appointment of Dr Patricia Dare to lead its defence and aerospace efforts in the US.

Titomic was founded a decade ago to commercialise technology developed at CSIRO as TKF.

Picture: credit Titomic

Further reading

Titomic makes first machine sale in Australia

Titomic makes $1.2 million sale to Oregon Manufacturing Innovation Center

Titomic continues inroads into US defence market with new appointment

Titomic in biggest-ever sale of 3D printers – destined for Ukraine