Aurora Labs has raised $6 million from a range of investors to expand its advanced manufacturing and production capabilities.
The company is seeking to expand its manufacturing capacity to support higher production volumes of its proprietary additively manufactured turbojet propulsion systems. It also hopes to progress commercial opportunities across the Australian and international defence and aerospace sectors.
Specifically, Aurora Labs will harness the funds to expand existing turbojet engine production lines, acquire commercial off-the-shelf metal additive manufacturing equipment, finalise production data packs, invest in key personnel to support the transition to full-scale production, and step up business development and marketing activities. The company also intends to use the funds for general working capital and costs, maintaining AS9100D aerospace certification, the maintenance of technical and commercial data rooms, and protecting its IP.
Aurora Labs has raised the $6m through the issuance of 109.1m new fully paid ordinary shares at $0.055 per share. Non-Executive Chairman David Trimboli is set to provide $550,000 of the funding, while Walkinshaw Group Holdings Pty Ltd – part of the Australian-headquartered engineering group – has also made a strategic investment. Aurora will now hold discussions with Walkinshaw relating to future production support and metal additive manufacturing.
“The successful completion of this $6m placement represents an important step in Aurora’s development as we continue to transition from technology development towards scaled commercial manufacturing and delivery of our proprietary systems,” Trimboli said. “Over the past 12 months, Aurora has made significant progress in establishing the technical, operational, and commercial foundations required to become a credible supplier to the global defence industry.
He continued: “With an established manufacturing facility, proprietary propulsion technology, and an expanding commercial footprint, Aurora is increasingly well positioned to capitalise on demand for sovereign propulsion capabilities. Our focus is now firmly on converting this progress into increased production volumes, additional customer contracts and sustainable commercial growth.”
The progress that Trimboli refers to is likely the achievement of AS9100D aerospace quality certification, commencement of commercial AU4 propulsion system deliveries, receipt of $1m in Defence Industry Development Grant funding and execution of a strategic Teaming Agreement with global defence company MBDA. Recently, the company also secured its maiden US propulsion system order, providing an initial commercial entry into the substantial US aerospace and defence market and further expanding the Company's international customer base.
The Placement will comprise the issue of ~109.1m New Shares at $0.055 (5.5 cents) per share, raising $6m (before costs). The issue price of $0.055 represents a 3.67% discount to the 10-day VWAP, a 3.16% discount to the 5-day VWAP and a 6.77% discount to the last trading price of $0.059 on 23 October 2026. The Placement will be completed in two tranches: • Tranche 1: $4,565,000 through the issue of 83,000,005 New Shares, with 30.64m to be issued utilising the Company's available placement capacity under ASX Listing Rule 7.1 and 52.36m to be issued under ASX Listing Rule 7.1A. Settlement of Tranche 1 is expected to occur on 2 November 2026, with allotment scheduled for 4 November 2026. • Tranche 2: $1,435,000 through the issue of 26,090,914 New Shares, subject to shareholder approval at a General Meeting to be convened by the Company in mid-January 2027. New Shares issued under the Placement represents ~20.8% of the current shares on issue. There was no lead manager or advisor appointed, with management of Aurora conducting the Placement. Brokers who participated in the Placement will be issued a total of 7.5m options under the Terms and Conditions attached, along with cash fees totalling $213k.
