InvestSMART

ORDINARY FULLY PAID (ASX:KTG)

ALERT: Price-sensitive ASX Announcement for KTG
Current share price for KTG : $0.145 0 (0%)+
Announcement
Release
17 Dec 2024 9:10AM
Price at Release
$0.145
Full Release
download
Summary
K-TIG Limited has announced the signing of a binding agreement to acquire Metal Powder Works, a Texas-based specialist in advanced metal powder production and additive manufacturing technology. The transaction aims to transform K-TIG into a vertically integrated player in the high-value additive manufacturing supply chain, combining K-TIG's proprietary welding technology with Metal Powder Works' patented powder production process. The agreement involves an initial consideration of US$16.5 million in K-TIG shares, potential milestone-based earnouts, and additional strategic and operational integration plans. The acquisition is subject to shareholder approval and is expected to position K-TIG for significant growth in global markets by enabling greater control over critical inputs and expanding its technological capabilities.
Key Points
  • K-TIG has signed a binding agreement to acquire Metal Powder Works.
  • Metal Powder Works specializes in advanced metal powder production and additive manufacturing technology.
  • The acquisition will create a vertically integrated business combining K-TIG's welding and Metal Powder Works' powder technologies.
  • Initial consideration is US$16.5 million, paid in K-TIG shares, with further milestone-based earnouts.
  • The transaction is subject to shareholder approval and other customary closing conditions.
  • The acquisition is expected to provide K-TIG with enhanced access to high-quality metal powders and additive manufacturing markets.
  • K-TIG expects to benefit from the integration of Metal Powder Works’ intellectual property and technical expertise.
  • The deal is positioned as transformative for K-TIG's growth strategy and market expansion.
  • Strategic rationale includes improved supply chain resilience, technological synergies, and access to new customers and industries.
  • Further details include operational integration plans, expected milestones, and financial implications.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.