Amaero International Announces Successful $25 Million Upsized Placement
AMAERO INTERNATIONAL LTD (3DA) Share Update September 2024 Monday 16th
Amaero Successfully Completes Upsized $25 Million Placement
Amaero International Limited (ASX:3DA) has announced the successful completion of an upsized institutional placement, raising A$25.0 million to support its capital investment program.
Instant Summary:
- Raised A$25.0 million through an upsized institutional placement.
- Placement priced at A$0.35 per share, a 4% discount to the last closing price.
- Proceeds to fund capital equipment purchases and improvements to Tennessee headquarters.
- Post-transaction pro forma cash balance of approximately A$37.2 million.
- Issuance of approximately 71.4 million new shares.
Successful Upsized Placement
Amaero International Limited (ASX:3DA) has successfully completed an upsized institutional placement, raising approximately A$25.0 million. The placement saw strong support from both existing cornerstone institutional shareholders and new Australian and international institutions.
The offering was priced at A$0.35 per share, representing a 4% discount to the last closing price of A$0.365 on 12 September 2024. This resulted in the issuance of approximately 71.4 million new fully paid ordinary shares to eligible sophisticated, professional, and institutional investors.
Use of Proceeds
The net proceeds from the placement will primarily be used to fund the purchase of capital equipment, including a second atomizer, and to make improvements to the company's headquarters in Tennessee. The post-transaction pro forma cash balance is expected to be approximately A$37.2 million, which will contribute to funding Amaero's planned capital investment program as it ramps up production.
Placement Details
The placement will be executed in two tranches. The first tranche will raise approximately A$19.6 million through the issuance of 56.1 million new shares, completed under the company's existing placement capacity. The second tranche, conditional on shareholder approval at the 2024 Annual General Meeting (AGM), will raise approximately A$5.4 million through the issuance of 15.4 million new shares.
The placement price of A$0.35 per new share represents a 4.1% discount to the last closing price, a 9.0% discount to the 5-day Volume Weighted Average Price (VWAP) of A$0.3845, and a 5.9% discount to the 10-day VWAP of A$0.3718 as of 12 September 2024.
Management Commentary
Hank J. Holland, Chairman and CEO of Amaero, expressed gratitude to existing institutional shareholders for their continued support and welcomed new investors to the company's register. Holland highlighted that the strong investor demand led to the decision to upsize the offering from the initially targeted A$20 million to A$25 million.
He stated, 'This capital raising, along with the qualification of C103 AM powder and the accompanying offtake and preferred supplier agreement with ADDMAN Group, are culminating milestones that position Amaero as the largest capacity and most responsive U.S. domestic producer of C103, refractory, and specialty alloy powder for additive manufacturing.'
The successful completion of the upsized placement is a positive development for Amaero, providing the necessary funds to support its capital investment program. This move is expected to enhance the company's production capabilities and strengthen its position in the market. The slight discount in the share price may have a minor short-term impact, but the long-term benefits of increased production capacity and improved facilities are likely to outweigh this.
Investor Reaction:
Analysts are likely to view this development positively, given the strong demand from institutional investors and the strategic use of funds. The successful completion of the placement at a relatively small discount indicates confidence in the company's growth prospects. However, some investors may be cautious about the dilution effect of the new shares.
Conclusion:
Investors should keep an eye on Amaero's progress as it utilizes the proceeds from the placement to enhance its production capabilities and facilities. The company's strategic initiatives and strong institutional support position it well for future growth. Stay informed on Amaero's developments and consider the long-term potential of this investment.