AML3D Raises $6.9m Across Rights Issue and Placement

AML3D Raises $6.9m Across Rights Issue and Subsequent Placement

Highlights

  • The AML3D Rights Issue successfully raised A$3.9 million via applications from existing eligible shareholders and a strongly supported Shortfall Placement.

  • The Company offered an Additional Placement raising a further A$3.0 million to cater for strong additional demand from institutional, professional and sophisticated investors in the Shortfall Placement.

  • AML3D now fully funded to establish its US manufacturing hub, maintain its technology advantage and increase its strategic position in the US Defence sector.

Results of Rights Issue

AML3D Limited (ASX: AL3) (AML3D or the Company) is pleased to announce strong support for the company’s non-renounceable, pro-rata, 1 for 3 rights issue (“Rights Issue”) to raise ~ A$3.9 million via the issue of ~78.5 new shares issue price of $0.05 (“New Shares”) announced to the ASX on 3 April 2024.

The Rights Issue, which closed on 9 May 2024, was supported by AML3D’s existing shareholders. Under the Rights Issue existing eligible shareholders could apply for additional New Shares in excess of their rights under a shortfall offer (“Shortfall Offer”). The shortfall shares arising from the Rights Issue and Shortfall Offer made up the New Shares offered to new and existing sophisticated and professional investors in the shortfall placement (“Shortfall Placement”).

Bell Potter, Taylor Collison and Cerberus Advisory were appointed as the joint lead managers (“Joint Lead Managers”) to the Rights Issue and delivered strong demand from a number of high quality new institutional and sophisticated shareholders as part of the Shortfall Placement and Additional Placement.

AML3D advises the New Shares issued under the Rights Issue, Shortfall Offer and Shortfall Placement totals $3.9 million as set out below;

Use of fundsA$m
US expansion to establish a physical presence with minimum one operating unit in the US. Establish US facility, expand sales team and technical resources.$4.5
R&D / product development through the launch of increased deposition and linear rail systems based on US market driven demand.$1.0
Working capital and Offer Costs.$4.4
TOTAL$9.9

The allocation policy for the Shortfall Offer recognised the strong and ongoing support of existing shareholders and prioritised their applications. AML3D will now proceed to issue 33,767,789 New Shares to the respective eligible participants by 16 May 2024, in accordance with the timetable announced to the ASX on 3 April 2024. The 44,749,084 New Shares allocated to new shareholders, via the Joint Lead Managers, under the Shortfall Placement will be issued on 23 May 2024.

Additional Placement of New Shares

As of result of significant additional demand in the Shortfall Placement, the Company is pleased to advise it has received firm commitments to undertake a placement to raise an additional $3,012,545.80 on the same terms as the Rights Issue, being at an offer price of A$0.05 per share with existing and new institutional and sophisticated shareholders that strengthen AML3D’s register (“Additional Placement”).

This additional funding will allow AML3D to be fully funded in its efforts to establish a US manufacturing base whilst retaining sufficient working capital to take advantage of potential growth opportunities.
Subject to shareholder approval, Non-Executive Director, Mr Peter Siebels has agreed to subscribe for $100,000 in the Additional Placement. The Company will issue 60,250,916 new shares under the Additional Placement, of which:

  • 58,250,916 New Shares will be issued using the Company’s existing capacity under Listing Rules 7.1 and 7.1A (Tranche 1); and
  • 2,000,000 New Shares will be issued to Non-Executive Director, Mr Peter Siebels, upon receipt of all necessary regulatory and shareholder approvals (Tranche 2)

Following completion of the Additional Placement, the total amount raised from the Rights Issue, Shortfall Offer and Additional Placement will be $6,938,389.45, before costs. Bell Potter, Taylor Collison and Cerberus Advisory acted as Joint Lead Managers to the Rights Issue and advised the Company on the Rights Issue and Placement.

Following completion of the Additional Placement, the total amount raised from the Rights Issue, Shortfall Offer and Additional Placement will be $6,938,389.45, before costs. Bell Potter, Taylor Collison and Cerberus Advisory acted as Joint Lead Managers to the Rights Issue and advised the Company on the Rights Issue and Placement.

AML3D Managing Director, Sean Ebert, commented

We are delighted by the overwhelming support we have received from our existing and new shareholders. We are now fully funded in our strategy to not only establish a US HQ and Manufacturing hub with a dedicated US national sales team in Ohio but also in having a sound working capital base to fund what we hope will be stronger than expected order flow in the future. Having US based operations will accelerate our penetration of the US Defence sector, in particular the US navy’s submarine industrial base.

2023 was the first year of our US ‘Scale Up’ strategy and we secured ~$10.7 million of US Defence contracts when supporting our US operations from our Adelaide facility. We look forward to building on our Defence success from our Ohio base and also leveraging our existing relationships to expand into the US Marine, Oil & Gas and Aerospace sectors.

A key part of building out our success will be maintaining our technology advantage and here again the strong support for this rights issue and placement means we are well funded to continue to invest in this key competitive advantage and deliver long term value for our existing and new shareholders.

Indicative Timetable*

ActivityDate
Announcement of results of Rights Issue and shortfall (if any) and issue of New Shares under the Rights Issue.Before noon on Thursday, 16 May 2024
Quotation of New Shares issued under the Rights Issue on ASX.Friday, 17 May 2024
Issue of New Shares under Tranche 1 of the Placement.Thursday, 23 May 2024
Despatch date for issuer sponsored holding statements and CHESS notices in relation to the New Shares issued under the Rights Issue.Friday, 24 May 2024
Extraordinary General Meeting.Thursday, 27 June 2024
Issue of New Shares under Tranche 2 of the Placement.Friday, 28 June 2024

* The dates in this table are indicative only and the Company reserves the right to vary these dates, subject to the Corporations Act 2001 (Cth), ASX Listing Rules and other applicable laws.

Use of Funds

Completion of the Rights Issue and Additional Placement will result in an increase in cash at hand by A$6.9 million (before the payment of the costs associated with the Rights Issue). The Company intends to apply the funds raised plus its existing cash of $3 million (per 31 March 2024 Appendix 4C Quarterly Report) as follows:

Use of fundsA$m
US expansion to establish a physical presence with minimum one operating unit in the US. Establish US facility, expand sales team and technical resources.$4.5
R&D / product development through the launch of increased deposition and linear rail systems based on US market driven demand.$1.0
Working capital and Offer Costs.$4.4
TOTAL$9.9

This announcement has been authorised for release by the Board of AML3D.

Source: AML3D Raises $6.9M Across Rights Issue & Placement, PDF

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About AML3D

AML3D Limited, a publicly listed technology company founded in 2014, utilises new technologies to pioneer and lead metal additive manufacturing globally. Disrupting the traditional manufacturing space, AML3D has developed and patented a Wire Additive Manufacturing (WAM®) process that metal 3D prints commercial, large-scale parts for Aerospace, Defence, Maritime, Manufacturing, Mining and Oil & Gas. AML3D provides parts contract manufacturing from its Technology Centre in Adelaide, Australia, and is the OEM of ARCEMY®, an industrial metal 3D printing system that combines IIoT and Industry 4.0 to enable manufacturers to become globally competitive.