Norsk Titanium AS: First Half Results and Financing Update
Oslo, Norway, August 30th 2023: Norsk Titanium AS is in the early stages of commercialization of its leading RPD® metal 3D printing technology, and reports revenue of USD 1.1 million and a loss before tax of USD 5.2 million for the first half 2023. The Company experienced an increase in its activity level with existing and potential customers throughout the first half of 2023, with ongoing efforts set to establish base revenue from serial production parts in all its three current focus markets: Commercial Aerospace, Defense, and Industrial.
“We maintain a record-high activity level moving into the second half 2023. There has been a simultaneous increase in the number of parts identified by existing customers for transition to serial production and new customer development activities that we believe will generate a robust revenue backlog supporting our longer-term revenue forecast.” says CEO Michael J. Canario of Norsk Titanium.
Delays in commercial deliveries to Hittech and final qualification approval from Airbus have pushed anticipated revenues from 2023 into 2024 and reduced expected revenues for 2023 below the previously published revenue range of USD 7-15 million. This delay, however, does not impact the Company’s revenue target of USD 150 million in 2026.
In addition to the strengthening of relationships with its tier-1 customers, the Company has entered into a strategic Collaboration Agreement with ATI, Inc., a global producer of high-performance materials and solutions for the aerospace and defense markets.
“We have seen customers that are using legacy production methods show an increased interest in our RPD® technology, with a goal to diversify their supply chains ahead of an anticipated upcycle in our target markets. We are very excited to now enter a strategic collaboration with ATI, and our two companies will immediately start to jointly assess the opportunities to apply RPD® to the applications and markets served by ATI.” adds Canario.
As previously announced, Norsk Titanium is evaluating additional investments into the Company and other strategic alternatives to secure necessary funding for continued operation. The Company is engaged in discussions with several potential investors to extend the financial runway. Average monthly cash burn in the first half year was USD 1.9 million, and the Company ended the first half with USD 4.1 million in cash. To facilitate continued operations in anticipation of a conclusion of the funding discussions, the Company’s two largest shareholders, Norsk Titanium Cayman Limited and Scatec Innovation AS, have agreed to provide a bridge loan of USD 2 million. This will provide liquidity through the end of September at the current burn rate.
The Company notes that no assurances can be given as to the outcome or timing of ongoing processes to secure additional funding. Should the process of securing funding extend beyond the available cash runway, the Company may not be able to financially support current operations and be required to implement inter alia cost reducing measures and assess continued operations.
CEO Michael Canario and CFO Ashar Ashary will present Norsk Titanium’s results at 15.00 CEST, followed by a Q&A.
Please use the following link to access the presentation: https://channel.royalcast.com/...
For more information, please contact:
Mike Canario, President and CEO of Norsk Titanium
Tel: +1 518 324 4010
Ashar Ashary, CFO Norsk Titanium AS
Tel: +1 518 556 8966
John Andersen, Chairman of Norsk Titanium AS
Tel: +47 90 17 40 80