Titomic Raises A$16.5m to Accelerate US Manufacturing Push Ahead of Relocation

Titomic (ASX: TTT) has secured firm commitments for an A$16.5 million institutional placement to fund the next phase of its US manufacturing expansion and support its push towards projected cash flow breakeven during 2027.

The non-underwritten placement will issue about 126.9 million new shares at A$0.13 each, representing approximately 7.9% of Titomic’s existing shares on issue.

Proceeds will be directed towards equipment and facility expansion at Huntsville, technical and other hires, technology and automation investment, and additional working capital.

Titomic also reported four new US purchase orders across aerospace, defence, space, energy, and industrial markets during the past two weeks.

Additionally, the company has appointed former Boeing executive Jim Chilton to its board from 15 September as it progresses a planned relocation to the US in the fourth quarter of 2026.

Capital to Support US Scale

Titomic plans to allocate A$6m of the placement proceeds to facility and equipment expansion, A$6m to working capital and reserves, A$2.3m to technology, automation and digital capability, and the balance to production and expansionary hires.

The placement price represents a 23.5% discount to Titomic’s A$0.170 closing price on 28 August and a 22.7% discount to its 15-day volume-weighted average price of A$0.168 to the same date.

Titomic had A$14.3m cash at 30 June, with the placement taking the combined figure to A$30.8m before any potential additional non-dilutive financing.

Its application for a direct loan of about US$10m from the Export-Import Bank of the United States (EXIM) has advanced further through EXIM’s internal underwriting and approval process, although the proposed facility remains subject to final due diligence and approval.

Commercial Order Momentum

With a combined value exceeding A$750,000, the four new US purchase orders came from major aerospace prime contractors and a leading energy company across military and commercial space, commercial and military aircraft, and oil and gas applications.

Titomic views the orders as evidence that customer engagements are progressing from initial qualification towards contracted work, repeat orders and potentially larger production programs.

The company’s commercial model centres on applying its advanced manufacturing capabilities to mission-critical products, repairs and sustainment, with the Huntsville operation intended to support greater US production capacity as customer demand develops.

Management has identified 13 conversion programs carrying illustrative 2026–2030 revenue potential of US$250m to US$430m, while expressly noting that these figures are not forecasts or contracted revenue.

Aligning Board with US Strategy

Mr Chilton will move from Titomic’s Strategic Advisory Group to the board, bringing nearly four decades of experience across US aerospace, defence, and space programs.

His Boeing career included senior leadership roles with responsibility for space, launch, missile defence, weapons, and intelligence portfolios.

Titomic considers the appointment supportive of its growing US operations and customer base as it increases its aerospace and defence focus and progresses the planned redomicile.

Mr Chilton will succeed Dr Andreas Schwer, who is retiring from the board in September after nearly six years of service, including a period as chair.