• Aurora Labs successfully completes $5.5 million Placement
• Sovereign Propulsion Systems joins as a strategic cornerstone investor
• Placement proceeds will advance A3D's drone propulsion business for Unmanned Aerial Systems (UAS) and guided munitions

Aurora Labs Limited (ASX: A3D) has announced that it has received firm commitments for a Placement of 105.8 million shares at an issue price of $0.052 per share to raise ~$5.5 million before costs. The capital raising was upsized following strong demand from new and existing institutional and sophisticated investors, reflecting confidence in Aurora's next-generation propulsion technology and commercialisation strategy. The Placement includes a cornerstone investment from Sovereign Propulsion Systems (SPS). In conjunction with its investment, Aurora has entered into a Collaborative Agreement with SPS for the aerial testing of its next-generation propulsion systems. The Placement will comprise two tranches, with Tranche One raising $3.1 million and Tranche Two raising $2.4 million, subject to shareholder approval. The issue price represents a 26.8% discount to the last traded share price. The proceeds from the Placement will primarily be applied towards advancing development of the Company's portfolio of propulsion systems for Unmanned Aerial Systems (UAS) particularly guided munitions, increasing the Company's printing capability at the Canning Vale facility in Western Australia, working capital and costs of the offer.

The collaboration with SPS delivers immediate capability to validate Aurora's propulsion systems in aerial environments, representing a critical milestone as the company moves towards commercialisation. Combined with its strengthened leadership team, Aurora is now well-positioned to accelerate development and capture opportunities in the rapidly growing UAS market.