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  • 10 November 2021 09:26

Titomic welcomes Repkon as $2.5m strategic investor

Titomic Ltd (ASX: TTT) shares increased 10 per cent yesterday on news that one of its customers Repkon Makina ve Kalip (“Repkon”) has made a significant strategic investment in Titomic of $2.5 million.

Titomic Ltd (ASX: TTT) shares increased 10 per cent yesterday on news that one of its customers Repkon Makina ve Kalip (“Repkon”) has made a significant strategic investment in Titomic of $2.5 million.

This is the first strategic investment of its type for Repkon, a Turkish based designer, manufacturer and supplier of metal forming machines for the global defence and aerospace industries with a head office in Istanbul. Earlier this year it signed a non-binding Heads of Agreement to enter into a joint venture with Titomic and build a production facility in Australia for the manufacture of weapons system barrels designed by Repkon and manufactured using Titomic’s Kinetic Fusion Technology.

Hebert Koeck, Chief Executive of Titomic, said, “I am delighted that our key customer Repkon is becoming a key strategic investor in Titomic at this time. Following the signing of the Head of Agreement this investment signals confidence in our technology platform and our strategy to commercialise our TKF technology through a global go-to-market approach which harnesses the benefits of joint ventures and strategic partners. We are excited to work with partners and customers who see the value in ensuring seamless integrating of custom Cold Spray Additive Manufacturing (CSAM) systems into supply chains, which enables both parties to more efficiently scale.

"This $2.5 million injection comes on top of the recent $9 million share placement which provides Titomic with the cashflow to accelerate our commercialisation through more joint venture operations, sales and support offices closer to our customers and operational facilities.”

Ibrahim Kulekci, Chief Executive of Repkon, said, “This is the first time Repkon has strategically invested in a supplier. However, with the success of our initial joint venture on weapons systems barrels we believe the performance, superior strength-to-weight ratios, enhanced durability and costs advantages these products and manufacturing processes provide will be of keen interest across many areas of tooling that supply the defence and aerospace industries.“

Under the executed Share and Option Subscription Agreement, Repkon will be issued 9,615,384 ordinary fully paid shares in Titomic at a price of $0.26 per share. In addition, Repkon will be issued attaching options on a 1 option for 1 Share basis, with a two-year expiry, 40 cent exercise price. Attaching Options will carry bonus options so that on exercise, a further option will be issued for every two Attaching Options exercised with a 30 June 2024 expiry and 60 cent exercise price. All Attaching Options will be issued subject to shareholder approval at the Titomic AGM on 15 December 2021. The transaction is due to complete on Thursday 16 December 2021.

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