Aurora Labs Secures $5.5M to Propel Drone Tech with Sovereign Partnership

Strategic Capital Raise Bolsters Aurora Labs’ Growth

Aurora Labs Limited (ASX – A3D), an industrial technology company specialising in 3D metal printing and advanced propulsion systems, has successfully completed a $5.5 million capital raising through a two-tranche placement. The raise attracted strong demand from both existing and new institutional investors, underscoring confidence in Aurora’s innovative drone propulsion technology and commercialisation roadmap.

The placement was priced at $0.052 per share, representing a modest discount to recent trading prices, and was upsized due to robust investor interest. The first tranche, raising $3.1 million, will settle imminently without the need for shareholder approval, while the second tranche, raising $2.4 million, awaits approval at the company’s upcoming Annual General Meeting.

Cornerstone Partnership with Sovereign Propulsion Systems

A key highlight of the placement is the strategic cornerstone investment by Sovereign Propulsion Systems (SPS), a South Australian company specialising in UAV and robotic propulsion solutions. SPS brings not only capital but also operational collaboration, having entered into an agreement to conduct rigorous aerial and bench testing of Aurora’s next-generation propulsion systems throughout 2026.

This partnership is particularly significant given SPS’s established role in multiple Australian Defence Force programs and its commitment to 100% Australian-made solutions. In exchange for funding the testing program, SPS will gain exclusive distribution rights for Aurora’s propulsion systems across AUKUS partner countries for a fixed three-year term, positioning both companies to capitalise on growing defence and unmanned aerial system markets.

Advancing Commercialisation and Manufacturing Capacity

The proceeds from the placement will be primarily directed towards accelerating the development of Aurora’s propulsion technology tailored for unmanned aerial systems and guided munitions. Additionally, the company plans to expand its 3D metal printing manufacturing capacity at its Canning Vale facility in Western Australia, enhancing its ability to meet anticipated demand.

CEO Rebekah Letheby emphasised the strategic importance of the raise and partnership, noting that the collaboration with SPS provides immediate capability to validate propulsion systems in real-world aerial environments; a critical step towards commercialisation. The strengthened leadership and capital position place Aurora Labs in a strong position to capture emerging opportunities in the rapidly evolving drone and defence technology sectors.

Looking Ahead

With the placement funds secured and a strategic partner onboard, Aurora Labs is poised to advance its technology validation and scale manufacturing. However, the success of tranche two remains contingent on shareholder approval, and the company will need to demonstrate tangible progress in its testing programs to maintain investor confidence. The unfolding collaboration with SPS and the broader defence sector will be key indicators of Aurora’s trajectory in the coming months.