Titomic to 3D print missile parts in the US through new A$30 million equity placement - 3D Printing Industry

Australian metal 3D printer manufacturer Titomic has secured binding commitments for an institutional equity placement to raise approximately A$30 million.

The proceeds will help fund the company’s new operational headquarters and manufacturing facility in Huntsville, Alabama. This seeks to meet the increasing demand from the US defense sector for 3D printed missile and aerospace components, as well as cold spray coating and repair capabilities.

Backed by existing and new shareholders, the placement will see around 250 million new fully paid ordinary shares issued for A$0.12 per new share, a 5% discount to 10-day VWAP. The shares will be available to eligible, sophisticated, professional and institutional backers.

Investor demand reportedly exceeded the initial A$25 million target, causing the company to upsize the offering to A$30 million. While some of these funds will support Titomic’s growth in the US, the rest will cover capital equipment and process optimisation programs, capital reserve and working capital, and other costs.

Titomic has also announced the appointment of Jim Simpson as its new CEO, effective January 1, 2025. Dag W.R. Stromme was named the new Executive Chairman earlier this month to assist with the company’s leadership transition and US strategy.

According to Stromme, Titomic is now “in an excellent position to advance our cold spray technology by executing our US expansion to Huntsville, Alabama, expanding our global manufacturing footprint as well as further advancing our coating and repair solutions.”

A$30.0 million raised in new equity placement

Through the new equity placement, Titomic will issue approximately 250.0 million new shares, 24.2% of its existing issued capital, through two tranches.

The first will see 143.2 million new shares issued, expected to raise around A$17.2 million. This will be completed under the company’s existing placement capacity and does not require additional approval. The second tranche will issue 106.8 million new shares to raise about A$12.8 million. This is subject to shareholder approval at the company’s 2024 Annual General Meeting.

The A$0.12 per new share placement price represents an 11.1% discount to the last A$0.135 closing price on 11 October 2024. It is 8.7% below the 5-day VWAP of A$0.1315 and 5.4% under the 10-day average price of A$0.1268. These new shares will have the same rights as the existing ones. The placement is not underwritten.

A$8.5 million of the proceeds will be used to expand Titomic into the US through its new facility. A$15.9 million is earmarked for capital reserve and working capital, with A$3.8 million mooted for capital equipment and process optimisation programs. The remaining A$1.8 million will cover other costs.

Shaw and Partners Limited served as Lead Manager and Sole Bookrunner to the placement, with Gleneagle Securities (Aust) Pty Ltd and Peloton Capital Pty Ltd acting as Co-Lead Managers. Titomic’s legal advisor was K&L Gates.

Titomic to expand defense and aerospace 3D printing in the US

Titomic has reportedly witnessed accelerated interest from the US Government and defense OEMs for its cold spray additive manufacturing capabilities. This specifically relates to the production of titanium missile and aerospace parts, as well as coating and repairing existing components.

To address growing demand, the company is working to become a US-based manufacturer through its new operating and production headquarters. The location, Huntsville, Alabama, is a leading defense and aerospace hub in America. NASA’s Marshall Space Flight Center is based there, while Boeing, Northrop Grumman, Lockheed Martin, Raytheon Technologies, and Aerojet Rocketdyne all have facilities in the so-called “Rocket City.”

Simpson noted that this move will align the company’s capabilities with the needs of the US aerospace and defense industries. Titomic’s new CEO has 40 years of experience in the satellite, aerospace, and defense sectors. He previously served as CEO of satellite companies Saturn Satellite Networks and ABS Corporation, as well as holding leadership positions at Virgin Orbit, Aerojet Rocketdyne, and Boeing.

Dale Strong, Representative for Alabama’s 5th Congressional District, commented that “Titomic’s technology is a perfect fit for the Rocket City. We are proud to have Titomic join us as part of this great community.”

This expansion into the US complements the company’s previous investment and growth within the European defense sector. Earlier this year, Titomic sold ten of its D523 Cold Spray 3D printers, valued at AUD$1.28 million, to the Royal Netherlands Army. Nine of these systems were sent to support Ukraine’s war efforts against Russia. The 3D printers have reportedly been deployed near the frontlines to support in-field battle damage repair and maintenance at the point of need.

Additive manufacturing enhances US defense capabilities

The US Department of Defense has acknowledged the value of additive manufacturing for the country’s warfighting capabilities and is making substantial investments to promote its development, adoption, and integration.

Indeed, Titomic is not the only cold spray 3D printer manufacturer to receive interest from the United States military. Earlier this year, the Expeditionary Manufacturing Unit (EMU) from fellow Australian company SPEE3D was successfully tested by the US Navy during the Rim of the Pacific (RIMPAC) maritime military exercise.

The company’s containerised cold spray 3D printing and post-processing system fabricated 11 cast-equivalent metal parts from aluminum and stainless steel during the exercise. The US Navy also employed Snowbird Technologies’ SAMM Tech hybrid DED manufacturing system at RIMPAC 2024. This was installed aboard USS Somerset (LPD-25), a San Antonio-class amphibious transport dock.

3D printing has also witnessed growing adoption for the production of missile systems to meet growing demand in the US amid moves to restock domestic inventories and support Ukraine and Israel’s ongoing war efforts.

For instance, Italian rocket and missile manufacturer Avio recently announced it was expanding the production of solid rocket motors (SRMs) for the DoD. The company, which employs Velo3D Sapphire 3D printers, will reportedly triple production capacity in the next 4-5 years.

Elsewhere, Rocket engine manufacturer Ursa Major received $12.5 million from the US Navy and the Office of Strategic Capital (OSC) last month to scale the production of 3D printed SRMs.

Through a prototype project agreement (PPA), the company will design, manufacture, and test a new SRM prototype for missiles critical to national security. This follows news earlier this year that the firm is 3D printing the Navy’s Mk 104 dual rocket motor, which powers the SM-2, SM-3, and SM-6 missiles.

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Alex is a Technology Journalist at 3D Printing Industry who enjoys researching and writing articles covering a wide variety of topics. Possessing a BA in military history and an MA in History of War, he has a keen interest in additive manufacturing applications within the defense and aerospace industries.