Oslo, Norway, 4 December 2023: Norsk Titanium AS (Euronext: NTI, OTCQX: NORSF), a global leader in additive manufacturing for aerospace-grade structural titanium components using its patented Rapid Plasma Deposition® technology, last week reached a milestone with the delivery of its 1,500th part to the Boeing supply chain and other industrial customers.
“Norsk Titanium has now delivered more than 1,500 3D-printed structural titanium parts to major commercial aircraft programs and in-service industrial applications”, says President and CEO Carl Johnson of Norsk Titanium. “We currently deliver eight different parts to customers in the commercial aerospace and industrial markets, and we continue to see an increase in the number of parts that these customers are identifying for transition to RPD®,” adds Johnson.
Norsk Titanium is looking forward to reaching several commercial milestones over the coming months, alongside with the announced strengthening of the financial position through a partially underwritten rights issue of up to NOK 225 million (equivalent of approx. USD 21) million to be completed in February 2024.
“We are now closing in on qualification approvals in commercial aerospace and expect this to lead to a significant number of parts being transitioned into revenue generating serial production over the coming months. This will rapidly expand our penetration into the commercial aerospace market,” says Johnson.
“We have also received a follow-on serial production order from Hittech, a Dutch industrial supplier to the semiconductor industry, and continue to make good progress on aerospace programs with large US Department of Defense prime contractors with deliveries targeted for 2024,” adds Johnson.
Based on current annual revenues and the growing number of parts in transition into serial production, the company is forecasting 2024 revenues of USD 15-20 million. By the end of 2024, transitioned parts is expected to secure an annual recurring revenue of approximately USD 50 million. The outlined growth trajectory should enable the company to reach cash-flow break-even towards the end of 2025, on its way towards the established ambition to reach USD 150 million in revenue with an EBITDA-margin of around 30% in 2026.
Underwriters and subscribers in the underwritten rights issue will also receive warrants exercisable during 2024. Provided that the underwritten rights issue is subscribed in full, and the warrants are executed at the maximum subscription price, the company may in total receive proceeds of up to NOK 370 million (equivalent to approx. USD 35 million). Combined with working capital financing, this would be expected to cover the funding required to reach cash flow break-even.
For more information, please contact:
John Andersen, Chairman of Norsk Titanium AS
Email: John.Andersen@scatec.no
Tel: +47 90 17 40 80
Carl Johnson, President & CEO Norsk Titanium AS
Email: Carl.Johnson@norsktitanium.com
Tel: +1 518 324 4010
Ashar A Ashary, CFO Norsk Titanium AS
Email: Ashar.Ashary@norsktitanium.com
Tel: +1 518 556 8966
About Norsk Titanium:
Norsk Titanium is a global leader in metal 3D printing, innovating the future of metal manufacturing by enabling a paradigm shift to a clean and sustainable manufacturing process. With its proprietary Rapid Plasma Deposition® (RPD®) technology and installed production capacity to generate annual revenues of approximately USD 300 million, Norsk Titanium offers cost-efficient 3D printing of value-added metal parts to a large addressable market. RPD® technology uses significantly less raw material, energy, and time than traditional energy-intensive forming methods, presenting customers with an opportunity to better manage input costs, logistics, and environmental impact. RPD® printed parts are already flying on commercial aircraft, and Norsk Titanium has gained significant traction with large defense and industrial customers.
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Important notice:
This information is considered to be inside information pursuant to the EU Market Abuse Regulation (MAR) and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. The stock exchange announcement was published by Anne Lene Gullen Bråten, Director Finance of Norsk Titanium AS, at the time and date stated above in this announcement.
Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe", "expect", "anticipate", "strategy", "intends", "estimate", "will", "may", "continue", "should" and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believe that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond their control. Actual events may differ significantly from any anticipated development due to a number of factors, including without limitation, changes in public sector investment levels, changes in the general economic, political and market conditions in the markets in which the Company operates, the Company's ability to attract, retain and motivate qualified personnel, changes in the Company's ability to engage in commercially acceptable acquisitions and strategic investments, and changes in laws and regulation and the potential impact of legal proceedings and actions. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not make any guarantee that the assumptions underlying the forward-looking statements in this announcement are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this announcement or any obligation to update or revise the statements in this announcement to reflect subsequent events. You should not place undue reliance on the forward-looking statements in this announcement.
The information, opinions and forward-looking statements contained in this announcement speak only as at its date, and are subject to change without notice. The Company does not undertake any obligation to review, update, confirm, or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this announcement.
This announcement is for information purposes only and is not to be relied upon in substitution for the exercise of independent judgment. It is not intended as investment advice and under no circumstances is it to be used or considered as an offer to sell, or a solicitation of an offer to buy any securities or a recommendation to buy or sell any securities of the Company.