Titomic Locks in A$16.5M to Scale U.S. Defence Manufacturing

Titomic locks in A$16.5 million to accelerate U.S. expansion

Titomic Limited (ASX: TTT) has received firm commitments for an A$16.5 million institutional placement from U.S. and Australian institutional investors. The raise extends the company’s operational runway through to projected cashflow breakeven during 2027, providing the fuel to push its U.S. growth strategy forward.

Key placement metrics at a glance:

• Raise size: A$16.5 million
• New shares: approximately 126.9 million fully paid ordinary shares
• Offer price: A$0.13 per share
• Discount to last close: 23.5% (last close A$0.170 on 28 August 2026)
• Discount to 15-day VWAP: 22.7% (VWAP A$0.168)
• Dilution: approximately 7.9% of existing shares on issue

Canaccord Genuity (Australia) Limited and Peloton Capital Pty Ltd acted as Joint Lead Managers and Bookrunners, with Bell Potter Securities Limited as Co-Manager.

How the funds will be deployed

The placement proceeds are earmarked for four specific uses, each tied directly to Titomic’s push to scale its U.S. operations:

1. Scaling capacity at the Huntsville facility through additional equipment
2. Technical and other expansionary hires to support production ramp
3. Technology, automation and digital enhancement
4. Working capital and reserve

The investment thesis here is straightforward. Each allocation category supports one aspect of turning a growing order pipeline into repeatable, scalable revenue. The projected cashflow breakeven during 2027 is the milestone investors should hold against this capital deployment — that is what this raise is designed to reach.

EXIM Bank loan — additional debt funding in progress

Alongside the equity raise, Titomic has disclosed that its application for a direct loan of approximately US$10 million from the Export-Import Bank of the United States (EXIM) has advanced further in EXIM’s internal underwriting and approval process. If completed, the proposed financing would support the continued expansion and industrialisation of Titomic’s U.S. operations.

This is not yet approved funding. Investors should treat it as a potential additional capital layer, conditional on EXIM completing its process, rather than a confirmed line.

What is cold spray technology and why does it matter for defence manufacturing?

Cold spray is a metal additive manufacturing process where fine metallic particles are accelerated at high velocity and bonded to a surface without melting. That distinction matters because melting introduces heat-related stress, distortion, and material degradation. Cold spray avoids all of that, enabling the production and repair of high-integrity metal components that conventional manufacturing cannot easily replicate.

Titomic’s proprietary version of this process, Titomic Kinetic Fusion™ (TKF), is patented technology. It serves end markets across Aerospace, Defence, Shipbuilding, Oil & Gas, Mining, and Automotive — sectors where material performance, precision, and repairability are non-negotiable requirements.

The U.S. defence and industrial base is a natural demand driver. The American military and its prime contractors face persistent pressure to reduce component lead times, extend asset lifecycles, and onshore critical manufacturing capabilities. Cold spray addresses each of those pressures directly. That is why the Huntsville, Alabama facility sits at the centre of Titomic’s growth strategy, and why expanding its capacity is the logical next step given where sector demand is heading.

Business momentum and what comes next

The placement announcement arrived with a tangible demand signal. Titomic disclosed four new orders received in the two weeks prior to the announcement date. That is not a trend on its own, but it is a meaningful indicator of pipeline activity at the point when the company is raising capital to scale.

Executive Chairman Dag W.R. Stromme provided the following commentary alongside the announcement:

Dag W.R. Stromme, Executive Chairman

“We are gratified to receive the support of U.S. and Australian institutional investors to support further growth initiatives. Our redomicile to the U.S. is on track for 4Q 2026. We are delighted to add U.S. Aerospace & Defense veteran Jim Chilton to our board. With our strengthened capital base, we are well positioned to take advantage of our global growth opportunities. The U.S. business is seeing strong momentum with four new orders received in recent two weeks, and we expect a strong increase in global orders for the remainder of 2026.”

Key milestones to watch

For investors tracking Titomic’s progress, these are the near-term catalysts that will define the next phase of the story:

• U.S. redomicile: on track for Q4 2026
• Board appointment: Jim Chilton, described as a U.S. Aerospace & Defence veteran, joining the board
• EXIM Bank loan: outcome of EXIM’s internal underwriting and approval process (approximately US$10 million, if completed)
• Settlement of placement shares: 7 September 2026 (allotment and normal trading: 8 September 2026)
• Cashflow breakeven: projected during 2027

The placement timetable is summarised below:

The timetable is indicative only and subject to change at Titomic’s discretion, subject to the Corporations Act 2001 (Cth), ASX Listing Rules, and other applicable laws. All dates reference Sydney time. Quotation of the New Shares is subject to ASX approval.

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