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- Additive Manufacturing company 3D Metalforge (3MF) announces firm commitments from institutional investors to raise $2.12 million for accelerating its next stage of growth
- The placement will issue around 47 million new shares at an issue price of 4.5 cents each, representing a 10 per cent discount to the last closing price of five cents on March 23
- The placement offer also includes three-to-two free attaching options, exercisable at nine cents with expiry five years from the date of issue, subject to shareholder approval
- Funds will be used towards the company’s growth initiatives in new key hubs in the US and Australia, and fulfilling exisiting contracts and converting business prospects
- 3MF shares are down two per cent at market close, trading at 4.9 cents
Additive Manufacturing company 3D Metalforge (3MF) has announced it has received firm commitments from institutional investors to raise $2.12 million for accelerating its next stage of growth.
The placement will issue around 47 million new shares at an issue price of 4.5 cents per share, representing a 10 per cent discount to the last closing price of five cents on March 23.
The placement offer also includes three-to-two free attaching options, exercisable at nine cents per option expiring five years from the date of issue, subject to shareholder approval.
Funds raised during the placement will be used towards the company’s growth initiatives in new key hubs in the US and Australia, and fulfilling exisiting contracts and converting business prospects to full production orders.
The company reported that it has achieved “encouraging early results” from the expansion into the US and Australia as part of its commercialisation strategy to specifically tap into the oil and gas, and resources sectors.
Its flagship manufacturing facility in Houston has resulted in first orders which has led to a production contract worth up to $400,000 per annum with leading US-based refinery Par Pacific for the supply of 3D Metalforge’s parts.
“Overall, FY21 shows that we have a proven business model for selling AM services,” Managing Director Matthew Waterhouse said.
“The year had its challenges due to COVID-19 related uncertainty and disruptions, but we’ve entered FY22 with increased activity underway.”
“The capital raising enables us to pursue our next leg of growth, further developing the new key hubs, whilst continuing to advance clients through the business prospects pipeline towards a full production order.”
Alto Capital and DealAccess acted as joint Lead Managers to the placement.
Both managers will receive a six per cent capital raising fee and will be issued with around 47 million advisory options exercisable at nine cents per option expiring five years from the issue date, subject to shareholder approval.
3MF shares were down two per cent, trading at 4.9 cents at market close.
