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Date : 03/12/2020

Amaero International Limited

ASX :

3DA

Market Cap : $116.50 Million

Hold

52 Week Range : $0.065 - $0.835

Share Price : $0.65

We recommend members to hold thier positions and wait for the SPP announcement.

Company Analysis

Amaero Limited (ASX: 3DA) is Australia’s largest Metal 3D printing company by volume of printers. and they mainly work with clients from aerospace, defence, automotive and tooling industries.


Source: Tradingview.com

Earlier this year, Amaero received the AS9100 Certification – a requirement to work with clients from the aerospace industry. This would bring in clients such as Boeing, Airbus and Raytheon in the future. In the early hours of today, the firm announced that it has received a purchase order from the Boeing – the world’s largest aerospace company that is based in USA.

While this is a one-off purchase order, the firm believes it is a significant step in the right direction. Amaero is expected to manufacture two sets of 4 components for the aerospace giant. It is still unclear how much Amaero will generate revenues for this contract. However, the announcement released by the firm suggest that it will be less than the $250,000 materiality threshold. While these revenues are small, the excitement is coming from the potential of future contracts from Boeing, upon successful completion of this order.

The shares have gone into a trading halt from today as we are awaiting an announcement from the firm to raise funds. A $5 million equity placement and a $3 million share purchase plan is expected to be revealed soon. The deal is said to be $0.55 a share – which is a 16% discount to the stock price at market close yesterday. The funds are said to finance the purchase of equipment, capital expenses, R&D, and working capital during the financial year. The capital raising is still unofficial however, and the stock is to remain in a trading halt until the 7th of December as we await this announcement.

Members who missed out initial coverage can view the report by clicking here. All financials remain unchanged from our initial analysis conducted in November.

Recommendation

In our earlier report, we did mention that we like Amaero as a long-term investment, and we are staying by it. The equity raise and share purchase plan is yet to be announced, and we recommend our members to hold their positions until we provide an update on the developments at Amaero.

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