Amaero Completes A$22 Million Placement: A Boon for U.S. Manufacturing Resilience

Amaero International Limited (ASX:3DA), a leading U.S. domestic producer of high-value C103, refractory alloy, and titanium powders for additive and advanced manufacturing, has successfully completed a fully subscribed institutional placement to raise approximately A$22 million. This capital raise, supported by both existing cornerstone institutional investors and a new U.S.-based institutional investor, marks a significant milestone for Amaero as it transitions to commercialization in FY2026.

The placement was priced at A$0.30 per share, a 10.4% discount to the last closing price, and this concludes a series of six strategic equity capital raises since May 2022, totaling A$98.5 million. Post-transaction, Amaero's pro forma cash balance stands at approximately A$41.5 million, in addition to the recent A$37.8M loan from the Export-Import Bank of the United States, providing a strong balance sheet and fully funded position as Amaero transitions to commercialization in FY2026.

Hank J. Holland, Amaero Chairman and CEO, commented, "As we transition to commercialization in FY2026, this equity capital raise concludes a series of strategic capital raises since May 2022 that have totalled approximately A$100 million. We are pleased that Regal Funds Management and IFM Investors will join Pegasus Growth Capital and Fidelity International as substantial investors and we are pleased to add a U.S. institutional investor."

The funds raised will be used for capital equipment purchases (A$10.5 million) and fit-out and improvements to the Tennessee facility (A$10.4 million), strengthening Amaero's balance sheet and strategic positioning in the U.S. market. This move aligns with the company's focus on enhancing U.S. domestic manufacturing capabilities and its long-term growth opportunities in mission-critical sectors such as defense, space, and aerospace.

The addition of Regal Funds Management and IFM Investors as substantial investors is expected to have a positive impact on Amaero's future growth and decision-making processes. These institutional investors, along with existing investors such as Pegasus Growth Capital and Fidelity International, will provide Amaero with a strong financial backing and strategic guidance. Their investment decisions are typically based on thorough due diligence and a strong belief in the company's potential for long-term success, signaling a vote of confidence in Amaero's business strategy and growth prospects.

The diverse backgrounds and expertise of these investors can provide valuable insights and strategic guidance to Amaero's management team, helping the company make more informed decisions and refine its growth strategy to better capitalize on market opportunities. The presence of these substantial investors can also facilitate access to additional capital and strategic partnerships in the future, further accelerating Amaero's expansion and success.

In conclusion, Amaero's A$22 million placement has significantly strengthened the company's financial position and alignment with its strategic goals for FY2026. The funds raised will be used to invest in capital equipment and facility improvements, further enhancing Amaero's U.S. domestic manufacturing capabilities and scaling its operations to meet growing demand. The addition of Regal Funds Management and IFM Investors as substantial investors is expected to have a positive impact on Amaero's future growth and decision-making processes, providing the company with strong financial backing and strategic guidance to capitalize on market opportunities in mission-critical sectors.