Manufacturing firm Titomic (ASX: TTT) has secured the exclusive rights to two pipe production patents after executing a licence agreement with The Commonwealth Scientific and Industrial Research Organisation (CSIRO).
In addition, the company has announced the acquisition of Future Titanium Technologies (FPP).
Under the CSIRO agreement, Titomic will gain the exclusive global rights to two patents to produce pipe and continuous pipe manufactured using titanium and titanium alloys.
The deal is expected to create significant global revenue opportunities for the Melbourne-based company across a variety of major industries, including the oil and gas, defence and mining sectors.
Titomic will also receive more than eight years of exclusive innovative additive manufacturing techniques and background IP to produce pipe and pipe components.
Using its Titomic Kinetic Fusion (TKF) systems, the company said pipe could now be additively manufactured without the constraints of traditional pipe manufacturing techniques.
Titomic managing director Jeff Lang said the expansion of its IP portfolio would help underpin the company’s vision of being a global leader in viable metal additive manufacturing.
“This is a significant expansion of Titomic’s IP and associated revenue opportunities,” he said.
“By adding these two new patents we are broadening our footprint in the titanium and titanium alloys additive manufacturing space to firmly secure our future market segments.”
Licence and acquisition agreement terms
Under the agreement with CSIRO, Titomic will pay the research agency a $125,000 upfront fee for licencing the technologies.
Titomic will also pay CSIRO a royalty on gross revenues received directly from the sales of products produced using either of the licensed patents.
For the FTT acquisition, Titomic will allot $400,000 worth of its shares at $2.00 per share, half of which will be escrowed for 12 months.
Titomic will also issue one new option for every two shares to FTT shareholders, exercisable at a price set at a 130% premium to the share price with a two-year life.
Titomic’s Kinetic Fusion
TKF is a unique metal 3D printing technology that uses both spherical and irregular morphology metal powders to manufacture industrial-scale metal products.
TKF process offers an alternative avenue for incorporating the metal into every day products including bicycles and golf clubs.
By utilising TKF’s production method of fusing dissimilar metals for pipes, valves and fitting components, the company asserts a range of heavy industries will be able to gain access to next generation dual-wall materials for superior wear and corrosive resistance properties.
Today’s agreements follow on from a string of encouraging company news announced in 2018, which included signing a titanium powder supply deal for 3D printing technology.
Titomic shares gained 8.2% to $2.24 in morning trade.