Norsk Titanium: Q3 2022 update – Significant progress towards 2022 milestones
October 26, 2022: Norsk Titanium AS (“Norsk Titanium” or the “Company”) continue to maintain 100% on-time deliveries to tier-one Boeing supply chain customers on the Boeing 787 program, while focusing on qualification and testing programs for additional Commercial Aerospace, Defense and Industrial customers in the third quarter.
Significant progress was made towards 2022 milestones, and subsequent to the quarter end, the company received its first commercial serial production order from an Industrial customer, Hittech, marking the achievement of one of the three milestones targeted for this year.
Progress on key milestones:
1) Commercial Aerospace: Delivered commercial OEM qualification test blocks and initiated industrial trials
2) Defense: Continued testing with US Department of Defense (DoD) prime contractors and receipt of initial production order
delayed to early 2023 due to aircraft production schedule
3) Industrial: Received recurring production purchase order from Hittech for a large component (80kg) installed on semiconductor manufacturing equipment
“Our progress in the third quarter gives us a clear line of sight to the transition into serial production with several customers in 2023. In addition to continuing material qualification testing, we initiated serial production industrial trials. Successful completion of testing and the industrial manufacturing trial will allow us to work directly with tier-one suppliers to transition additional parts to our RPD® technology.” says Michael Canario, CEO of Norsk Titanium.
He continues, “We continue to drive to our revenue target of USD 15 million in 2023 and USD 150 million in 2026. We will continue our efforts to raise additional capital to fund ongoing development and production activity until revenue from operations can support the business. Our major shareholders, who have supported Norsk Titanium through its evolution, continue to show strong support and alignment with our long-term vision. We are on track to strengthen our cash position, targeting a capital raise in the fourth quarter backed by our major shareholders.”
Norsk Titanium generated revenue from parts of USD 0.47 million in the third quarter of 2022, with an average monthly cash burn rate of USD 1.89 million a decrease from USD 2.16 million in the same period last year and on track with our year-end target burn rate. With an ending cash balance of USD 6.00 million, Norsk Titanium expect to fund operations to the end of 2022. The Company will seek to raise additional capital in the fourth quarter to extend the cash runway, which will also allow us to continue to evaluate other strategic alternatives.
For further information, please contact:
Ashar Ashary VP Finance
+1 (518) 556-8966