The Amaero International Ltd (ASX: 3DA) share price will be one to watch when the company's shares resume trading, after Amaero announced it received a purchase order from the world's largest aerospace manufacturer, Boeing Co (NYSE: BA). The order is for the manufacture of metal evaluation parts.
The company provided an update on the order this morning, after which Amaero shares were placed in a trading halt. The trading halt was requested in relation to a potential capital raising.
About Amaero
Amaero made its ASX debut on 6 December 2019 at an initial public offering (IPO) offer price of 20 cents per share. The company uses additive manufacturing processes, otherwise known as 3D printing, to produce components out of various metal alloys. Its clients are predominantly in the defence and aerospace industries.
Amaero is Australia's largest metal 3D printing company by volume of 3D printers. Currently, six out of the top ten defence companies in the world are Amaero clients.
The company's growth strategy is to focus on immediately addressable commercial opportunities whilst still providing growth optionality. It aims to assist defence and aerospace clients in preparing for future military and aviation platforms utilising Amaero's proprietary metal 3D printing processes and alloys. The company says its products provide improved performance and decreased weight whilst delivering mechanical enhancements not achievable via traditional manufacturing methods.
Amaero share price performance
The Amaero share price has rocketed more than 300% since its IPO to a closing price of 65 cents on Wednesday. The company has made a series of significant achievements since listing including:
- Tooling agreement with Fletcher Insulation, Australia's leading insulation company, for the development of an additive manufacturing application, to provide a superior tooling solution to Fletcher and its global manufacturing network.
- Development agreement with top 10 global automotive manufacturer for metal 3D printing of tooling.
- Commencement of qualification statement of work for the world's largest aerospace manufacturer.
- International patent application in final stage for its high performance titanium alloy.
The company had $4 million in cash and cash equivalents as at 30 June and believes it can become cash flow positive by 2023.
Boeing purchase order for evaluation parts
Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners. It also produces defence, space and security systems which support airlines and government customers in more than 150 countries. Its products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defence systems, launch systems, advanced information and communication systems, and performance-based logistics and training.
The evaluation parts for Boeing will be developed and manufactured at Amaero's facilities in California and Melbourne.
