The Titomic Ltd (ASX: TTT) share price has caught the eye on Tuesday.
At one stage today, the ASX small-cap stock was up as much as 45% to 7.1 cents.
It has since pulled back but remains up 31% at the time of writing.
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Why is this ASX small-cap stock rocketing?
Investors have been scrambling to buy the industrial scale metal additive manufacturing company's shares on Tuesday following a big announcement.
According to the release, Titomic has received an order from the land branch of the Royal Netherlands Army, the Koninklijke Landmacht.
The order comprises 10 units of the D523 System, with a total sale value of EUR 772,000 (A$1.28 million). This is its largest D523 order to date and marks a "significant milestone" in Titomic's expansion in the defence sector.
D523 System allows for onsite metal repairs and coatings with a low pressure cold spray.
The release notes that the Royal Netherlands Army will send 9 of the units to Ukraine to provide aid to its war effort. These systems will enable battle damage repair in-field and forward maintenance, enhancing battle readiness and prolonging mission capability.
Management believes that this order represents a substantial revenue opportunity for Titomic and reinforces its position as a key player in the global defence and aerospace sectors. Particularly given its belief that the D523's capabilities align perfectly with the needs of the Koninklijke Landmacht, which it feels demonstrates its ability to meet the stringent requirements of military applications.
The delivery of the D523 systems is scheduled to commence in the coming months.
'A pivotal moment'
The ASX small-cap stock's managing director, Herbert Koeck, referred to the order as a "pivotal moment" for the company. He said:
This order from the Royal Netherlands Army marks a pivotal moment for Titomic, showcasing our D523 System's ability to provide versatile repair and maintenance solutions on a large scale and creating a significant revenue opportunity. This is a stride forward in our ongoing efforts to bring these innovative solutions to a wider market. Titomic is aiming to attract more large-scale orders from innovators across various sectors in the coming months, including resources, defence, and aerospace, who are eager to leverage the advanced capabilities Titomic offers.
