Amaero raises AU $22M in placement, secures major institutional investors for FY2026 commercialisation
February 19, 2025
Amaero International Limited, based in McDonald, Tennessee, USA – a producer of high-value C103, refractory alloy, and titanium powders for the additive and advanced manufacturing of components for the defence, space, and aviation industries – has successfully completed the bookbuild for an institutional placement to raise approximately AU $22 million.
Capital raising was fully subscribed by Pegasus Growth Capital, the Amaero Board, four lead institutional investors, and a new US-based institutional investor. Following the capital raise, Regal Funds Management and IFM Investors will join Pegasus Growth Capital and Fidelity International as substantial investors.
The offer was priced at AU $0.30 per share, a 10.4% discount to the last closing price and this placement concludes a series of six strategic equity capital raises since May 2022, totalling AU $98.5 million.
The company stated that post transaction pro forma cash balance of approximately AU $41.5 million, in addition to the recent AU $37.8M loan from Export-Import Bank of United States, provide a strong balance sheet and fully funded position as Amaero transitions to commercialisation in FY2026.
“As we transition to commercialisation in FY2026, this equity capital raise concludes a series of strategic capital raises since May 2022 that have totalled approximately A$100 million,” said Hank J Holland, Amaero chairman and CEO. “This financing satisfies the precedent condition in the recently announced EXIM Bank loan to complete capital raise prior to 1st loan draw and it fully funds the planned capital expenditures and operations through anticipated EBITDA breakeven in FY2026. This marks a significant milestone for Amaero. 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 US institutional investor.
“With the support of our stakeholders, we continue to focus on our strategic positioning as the largest capacity and most responsive US domestic producer of C103, refractory, and speciality AM powders for Additive Manufacturing. And, our pioneering PM-HIP manufacturing of large near-net-shape parts provides an important substitute for castings and forgings. We have taken bold and deliberate action to address critical gaps in the United States’ supply chain and to create a more resilient and more scalable domestic manufacturing capability for mission-critical defence, space and aerospace applications,” Holland continued. “Our strong balance sheet, first mover advantage and differentiated capability, coupled with the United States’ priority initiatives to re-shore, re-build and scale industrial base capabilities creates an enduring long-term opportunity for Amaero and its shareholders.”
The company plans to issue approximately 73.3 million new fully paid ordinary shares to eligible sophisticated, professional and institutional investors at a price of AU $0.30 per new share. Following completion of the placement, new shares under the placement represents 11.9% of Amaero’s existing issued capital and will be issued as follows:
- an unconditional component of approximately AU $20.5 million fully committed proceeds and 68.3 million new shares will be issued pursuant to the company’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A
- a conditional component of approximately AU $1.5 million fully committed proceeds and 5.0 million new shares to be issued, subject to shareholder approval in accordance with ASX Listing Rules 7.1, 7.1A and 10.11; a notice of general meeting will be sent to shareholders shortly
The placement price of $0.30 per new share represents a:
- 10.4% discount to the last closing price of AU $0.335 on February 6, 2025
- 10.5% discount to the 5-day Volume Weighted Average Price (“VWAP”) of AU $0.335 on and including February 6, 2025
- 9.6% discount to the 15-day VWAP of AU $0.332 on and including February 6, 2025
New shares issued under the placement will rank pari passu with existing fully paid ordinary shares on issue. The placement is not underwritten.
