Industrial scale additive manufacturing company Titomic has made a breakthrough sale of two massive production machines with the total sale valued at $25.5 million (US$16.8 million).
The company changing deal is with Composite Technology, an Australian R&D and commercialisation division of a global defence product manufacturer.
Titomic’s Titomic kinetic fusion (TKF) production process will be certified by the company to deliver defence products, namely NATO replacement parts, to the global defence market.
The sale came after nearly two years of research and prototyping to guarantee quality assurance, design, development and production capability of the TKF system.
Titomic managing director Jeff Lang said: “This is a significant milestone for Titomic.
“I am very proud to see the commercial realisation of TKF as an Australian advanced technology that is leading the world in industrial scale metal additive manufacturing.”
As part of the sale Composite Technology will receive 7.5 million Titomic options when it enters into a joint cooperation agreement to develop certified manufacturing processes for defence products.
Composite Technology will receive a further 7.5 million Titomic options for providing certification for the quality assurance requirements of the process.
Trading in the company’s shares had been halted in anticipation of an announcement, but the size of the deal surprised observers.
The company’s shares have halved in value since September, and were selling on the ASX at 81.5 cents when the halt came into effect.
Founder of Composite Technology Anthony Khouri said his company was pleased to partner with Titomic to introduce the TKF system into its processes.
Khouri said: “This partnership will enable more effective, efficient and sustainable manufacturing solutions and will increase capacity in the area of defence related product and component development that will provide significant revenue opportunities for both parties.”
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