Investors back disruptive welding company K-TIG with $7m raise
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Special Report: Precision welding tech company K-TIG has re-listed on the ASX after raising $7 million from institutional, high net worth, and retail investors.
K-TIG (ASX:KTG) is drastically improving the economics of metal fabrication with its disruptive welding technology, which operates at a fraction of the time (and cost) of conventional alternatives.
Discovered by the CSIRO, this tech welds up to 100 times faster than a traditional TIG welder. It can achieve full penetration in a single pass in materials up to 16mm thick.
It is particularly well suited to corrosion resistant metals such as stainless steel, nickel alloys, titanium alloys, and most exotic materials such as zirconium and zirconium alloys.
K-TIG made $1.1 million in revenue from welding tech unit sales in the 2019 financial year.
But the company, which merged with Serpentine Technologies to achieve the re-listing, will now move from unit sales to a licensing revenue model. By providing welding-as-a-service (WaaS) the company can ensure long term recurring revenues, it says.
During the next 12 months, K-TIG will look to sign several pilot partner licensing agreements with customers to fine tune and strengthen this licensing model.
K-TIG sold 35 million shares at 20c a pop, and it will have a market cap of $28.9 million once it goes live on the ASX.
Funds raised will be used to support the company’s growth strategy — enhancing its sales and marketing initiatives, supporting research and development projects, and purchasing long lead capital items.
Strong support for the offer shows just how highly the tech sector is regarded, said David Williams, chief exec of K-TIG.
“This listing allows us to take K-TIG and its disruptive technology to the next stage of growth and development; to date, K-TIG has secured achieved some great milestones by generating revenue from global customers.”