Titomic (ASX:TTT) has secured commitments for a $16.5 million institutional placement alongside four new US purchase orders worth more than $750,000.
The non-underwritten placement comprises approximately 126.9 million new shares priced at $0.13 each, a 23.5% discount to Titomic’s closing price of $0.17 on 28 August.
Titomic says the proceeds will fund additional equipment for its Huntsville facility in Alabama, US, as well as technical and production hires, automation and technology enhancements, and working capital.
The company expects the placement to extend its operational runway through to its projected cash flow breakeven point during 2027.
Titomic’s application for a direct loan of approximately US$10 million ($14 million) from the Export-Import Bank of the United States has also progressed further through the bank’s internal underwriting and approval process.
If approved, Titomic notes the loan would support the continued expansion and industrialisation of the company’s US operations.
The new orders were received from major US aerospace prime contractors and an energy company over the past two weeks. They cover military and commercial space, commercial and military aircraft, and oil and gas applications.
CEO Jim Simpson says the orders indicate that customer enquiries and qualification work are progressing into contracts.
“While individual orders are important, the broader trend is what gives us confidence,” Simpson says.
“Titomic’s sizeable and growing sales pipeline is increasingly converting into contracted work across the markets we have deliberately targeted.”
Titomic says the orders provide near-term revenue while expanding its relationships and manufacturing credentials with US prime contractors and strategic customers.
The company recently hosted Lieutenant General Heath Collins, Director of the US Missile Defense Agency, and an agency delegation at Huntsville to demonstrate its manufacturing, repair, and sustainment capabilities for missile defence applications, as reported by Mining.com.au on 28 August.
Titomic Executive Chairman Dag Stromme says the company’s proposed redomicile to the US remains on track for the fourth quarter of 2026.
Settlement of the placement is expected on 7 September, followed by allotment and normal trading of the new shares on 8 September.
Titomic is a manufacturing company specialising in metal additive manufacturing, coatings, and repairs using its cold spray technology. It serves the aerospace, defence, shipbuilding, energy, mining, and automotive sectors.
Write to France Pinzon at Mining.com.au
Images: Titomic
