Aurora Labs Share Price Slump 10% as It Unveils Capital Raise (ASX:A3D)

By ,

When it comes to exciting new industries, few are as impressive as 3D printing. And when it comes to the next frontier of 3D printing, it’s all about metal!

That’s why companies like Aurora Labs Ltd [ASX:A3D] are working hard to pioneer the technology to make 3D metal printing possible. Not only by creating the machines themselves, but also the valuable powders that are used as the printing materials.

As you can likely imagine, though, creating such technology isn’t cheap. Which is why Aurora, as a pre-revenue company, is a very capital-intensive investment.

And with a fresh capital raise announced today, shareholders have been reminded of this fact firsthand…

$4 million to get Aurora closer to commercialisation

Aurora — a $19 million market cap stock — has declared that it is raising $4 million in fresh funds. Tapping both sophisticated and retail investors for new capital to help it achieve its long-term goals.

So far, management has received commitments for $3 million from new professional investors. Issuing some 26,086,957 shares at 11.5 cents each to raise the money.

Now, though, this same offer will be extended to existing retail investors. Which will allow current shareholders to acquire up to $30,000 worth of new shares directly via this placement — crucial capital that will help fund the company’s next steps towards its commercial objectives.

As Aurora CEO Peter Snowsill comments:

We value the support of existing shareholders and new professional and sophisticated investors through this capital raising. This funding will enable us to pursue our commercialisation partnership goals with the technology we’ve developed and assist in preparing our go-to-market activities.

Unfortunately, though, it will also lead to some dilution of the stock for all shareholders. A result that hasn’t gone unnoticed by traders that have bid the Aurora share price down 10.71% at time of writing.

Needless to say, management will have to put this money to good use to win back the market’s favour. As well as deliver some positive share price momentum.

How to Limit Your Risks While Trading Volatile Stocks. Learn more.

What’s next for the Aurora Share Price?

The immediate focus for this microcap is to finalise all the details of this placement. Getting all the paperwork and approvals sorted in order to issue these new shares.

Following that, the much bigger goal is to prepare for said ‘go-to-market activities’. Something that will be vitally important given Aurora has stated that its technology is commercially ready.

All we need to see now is whether it will sell or not.

And for new and old shareholders alike, here’s hoping that it does…

If, however, 3D printing doesn’t excite you, then how about artificial intelligence? Because if there is one innovative sector up to the task of competing with 3D printing in terms of excitement, it is AI. And for any investor looking to wrap their head around this emerging technology and the investment opportunities that abound, then you need to read our latest report.

Get your free copy, including a list of five of our favourite AI stocks on the market right now, right here.


Ryan Clarkson-Ledward,
For Money Morning

PS: Our publication Money Morning is a fantastic place to start on your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here

About Ryan Clarkson-Ledward

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor…

Money Morning Australia