Thesis Leap as opposed to Thesis Creep with Amaero (ASX:3DA)?

Board make-up changes and Executive team additions announced during the quarter appear to have strong-industry relevant backgrounds. This re-invented business is in its infancy, so time will tell how their leaders operate as a collective. Fair to say, that the "key-man risk" with Chairman / CEO Hank Holland driving both strategy and opertions is somewhat reduced.

Hank Holland's expertise in Capital Markets will be still crucial in the coming months as there is only an estimated 1.68 quarters of funding remaining as at the end of September 2023.

Their chosen niche is the production of C103 which is a niobium alloy used in high temperature operating environments (Propulsion systems in Defence and Aerospace).

I'm still willing to speculate in the Additive Manufacturing space, assuming that US Federal and State Govt support remains strong. Very confident that the Industry pie will grow for many years. So, first things first, need to see if the company can hold on to a slice of the Alloy powder production pie.

Amaero's shift to the US will see it terminate its Australian premises leases and any ongoing Australian commercial contracts. Equipment and inventory held in Australia may be shipped to their Tennessee facility or will be sold. As a result, the Company expects to have additional funds to support its flagship operations and associated working capital requirements.

September quarter Operational highlights below:

• First Atomiser production to be dedicated to Refractory Alloy, C-103

Niobium alloy with high performance, heat-resistant properties critical to hypersonic and space applications

• Initiation of operations in McDonald, Tennessee

15-year lease signed on a 9,300-sq-metre modern, purpose-built facility

Fit out activities underway

Installation of 1st atomiser expected to commence in 2Q CY2024

• Post quarter end, Amaero announced the cessation of its Australian operations

The decision allows the executive team to focus on its U.S. flagship operations

and to prudently manage operating expenses

• Cash balance of $5.4 million as of 30 September 2023

3D printing company Amaero has raised approximately A$11.0 million from Institutional Investors

It is somewhat frustrating that management did not seek to raise capital when the share price was about double this time last year.

There is some small consolation that the resulting dilution didn't require further discounting to the current share price for institutional investors to jump on board.

Management expecting to reach cash flow positive with the Ti alloy powder plant coming on-line. This messaging could help stave off further share-price declines.

They have been guilty of overpromising in the past, particularly on timelines. My investment thesis has been severely tested as a result but not quite broken as yet. Manufacturing capabilities being brought back to Australia is a strong thematic going forward.

Key highlights of today's ASX announcement:

• Amaero raises US$7.6 million (~A$11.0 million1 ) from institutional investors led by US growth investors Pegasus Growth Capital Fund I (“PGCFI”) and a group of prominent US institutional investors managed by Amaero’s US strategic adviser Omer Granit

• Funds 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; and to Identify and pursue US strategic alternatives with Guggenheim Securities.

• New Shares issued under the Placement priced at A$0.21, representing nil discount to the last traded price as at 9 May 2022

• Pegasus Growth Capital’s Managing Partner, Hank Holland to join the Amaero Board, subject to receipt of necessary regulatory approvals

Amaero_Institutional_Placement.pdf

Amaero (ASX: 3DA) December 2021 Quarterly Activities Report    

December 2021 quarter highlights:

? Heads of Agreement secured with Gilmour Space that will lead to a long?term supply agreement expected to deliver total revenues of ~A$1.7 million

? Positive test results for spinner tools for the Fletcher Insulation project and good progress with Rio Tinto with the first batch of billets atomised and being tested

? Revenues increased 21% quarter?on?quarter (q.o.q) to $134,388; Amaero continues to focus on progressing key projects to deliver increased revenues

? Operating costs fell 22% q.o.q to $2.064 million due to a significant drop in manufacturing, corporate and administration costs

? Cash balance of $4.97 million, providing support for continued investment in key projects and contracts to deliver future revenue growth

? Post?quarter end, 10?year lease secured for titanium plant and works commenced; construction expected to be finalised and commissioning to start in 3Q CY2022

Commenting on the quarter, Amaero International Limited CEO, Barrie Finnin said: “Amaero made good progress during the quarter on key projects, with a new Heads of Agreement with Gilmour Space that will lead to a long?term supply agreement, receiving positive test results for the Fletcher project and the first batch of Rio Tinto’s alloy billets atomised and testing commenced. These advancements were capped off by our announcement earlier this month that we have secured a 10?year lease and works have commenced for our titanium powder plant here in Victoria. We expect that construction will be finalised and commissioning will start in 3Q CY2022. The project is significant for Amaero in that it will provide us with a strong revenue and profit stream and provide our Company and other users in Australia and overseas with a reliable source of strategically important titanium alloy powder.” 

The Company expects contract negotiations for its proposed 3D printing centre in the midde east will commence in the first half of Financial Year 2022 (Not the first half of Calendar Year 2022 as stated in their quarterly)

3D Pinting company Amaero will build a Titanium Powder Plant in Australia