The AML3D Ltd (ASX: AL3) share price will be on watch this morning. This comes after yesterday's market close announcement that the company is progressing with its next-gen body armour program.
Progression to stage 2 development
The AML3D share price could be on the move today after the company advised its next-gen body armour program has progressed to the second stage.
According to the release, AML3D's 'made-to-fit' titanium body armour entered the next stage of prototype development with Lightforce Australia Pty Ltd.
Lightforce is a developer and manufacturer of defence solutions with operations in Australia and the United States.
Production of the innovative, high-tech body armour is under direct supervision of AML3D's Wire Arc Manufacturing division. It is stated that the prototype is uniquely printed in a way that is not possible using traditional techniques. Potential applications include creating 'made-to-fit' body armour by scanning the torsos of individual soliders.
The first stage of the program marked the beginning of the Memorandum of Understanding (MoU) with Lightforce and involved product testing. The second stage will encompass ballistics testing with additional prototypes. These samples will be used with a variety of thicknesses and finished using a range of different techniques and treatments. The end goal for AML3D is to optimise the design to deliver the lightest, yet strongest armour to market.
Finalisation of the second stage will conclude the testing phase under the MoU. AML3D will spend $55,000 on providing several prototypes to Lightforce for testing.
AML3D advised it is confident it will succeed in developing the next-gen body armour product for commercialisation. The company also noted the opportunity for contract manufacturing revenues is significant.
According to AML3D, the market for such a product is expected to be above US$3 billion by 2025, representing a compound annual growth rate of 5.5%.
Management commentary
AML3D managing director, Mr Andrew Sales, was pleased with the company's achievements. He said:
We're excited to progress to Stage 2 with Lightforce in the development of a disruptive, world- first product offering. We're confident that our highly qualified team will be able to deliver a range of prototypes that meet or exceed Lightforce's required specifications.
Post the recent capital raise, AML3D is now well capitalised to fulfil the demands of opportunities such as Lightforce, which have the potential to deliver significant contract manufacturing revenues.
About the AML3D share price
The AML3D share price has risen strongly since its initial public offering (IPO) earlier this year. Back in April, AML3D shares were asking just 15 cents but have since increased to 42 cents as at yesterday's close. This reflects a gain of 180% for investors who held the company's shares over this eight month period.
The AML3D share price reached an all-time high of 73 cents in September, and has been gradually trending lower in the months following.
