- Amaero International (3DA) raises around A$11 million to finalise titanium alloy powder plant
- Under the placement, the company issued about 39 million shares to eligible investors at 21 cents per share, raising a total of $8.2 million
- Additionally, Amaero also issued a $2.8 million senior convertible note to Pegasus Growth Capital Fund I (PGCFI)
- Funds from the raise will be used to finalise the installation and commissioning of the plant, which is expected to take Amaero to a cash flow positive position
- 3DA shares are up 9.52 per cent, trading at 23 cents
Amaero International (3DA) has raised around A$11 million via a combination of an institutional placement and the issue of a senior convertible note.
The company issued approximately 39 million new shares to institutional investors at 21 cents per share, raising a total of $8.2 million and issued a $2.8 million senior convertible note to Pegasus Growth Capital Fund I (PGCFI).
Funds from the raise will be used to finalise the installation and commissioning of the titanium alloy powder plant, which is expected to take Amaero to a cash flow positive position.
Amaero will also use the funds to identify and pursue strategic alternatives for the company to maximise shareholder value following the engagement of Guggenheim Securities.
“Amaero is a great example of a strong, well-positioned growth business that is underserved by institutional capital,” said Pegasus Managing Partner, Hank Holland.
“As a world-leading research and technology firm, Amaero is at a tipping point for the commercialisation of its technology and catalysts are in place to drive step function growth.”
New shares issued under the placement will rank equally with existing Amaero shares from their date of issue.
Settlement of the new shares is expected to occur on May 20 with allotment expected to occur and normal trading of those shares expected to commence on May 23.
The senior convertible note has a maturity date of three years from issue date and has an interest rate of 2.25 per cent in year one.
In the event the note has not been converted, the interest rate will be 15 per cent in years two and three.
3DA shares were up 9.52 per cent, trading at 23 cents as of 12:55 pm AEST.