The ASX-listed defence company has been selected to supply a US government agency with ballistic armour products.
XTEK’s wholly-owned US subsidiary HighCom Armor Solutions has received a US$1.1 million ($1.5 million) purchase order from an undisclosed US federal government department for the delivery of specialist ballistic armour products.
The company is expected to leverage its experience producing ultra-light high-performance hard armour plates and ballistic helmets from its manufacturing facilities in Columbus, Ohio, and Adelaide, South Australia
XTEK is scheduled to deliver the equipment over the second and third quarters of the 2022 financial year.
“HighCom is XTEK Group’s global armour brand, and it is the foundation of the group’s ballistics division,” Scott Basham, XTEK chief executive, said.
“… [We] provide military, law enforcement, and first responder customers with world-class, advanced personal protection ballistic products and solutions.
“This order for $1.5 million of specialist ballistic products is a great testament to the very high regard and trust that the HighCom Armor brand has with the US federal government.”
The order comes just a week after XTEK launched a capital raising valued at approximately $7.7 million in a bid to bolster its product offering, which includes its ballistics armour products.
Other touted benefits of the capital raise include:
- investment in UAVs — the development of an Australian-made small VTOL unmanned aerial vehicles for upcoming sales opportunities with the Australian Defence Force;
- investment in software — the development of the next XTatlas actionable intelligence software applications; and
- More working capital — funds required to grow the company’s business and meet its ongoing financial obligations for factory stock, corporate and transaction costs.
In September, XTEK also confirmed its receipt of a $1.9 million purchase order from the Department of Defence for spare small unmanned aerial system (SUAS) parts used as part of the LAND 129-4A program.
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This followed the signing of two memoranda of understanding with Queensland’s Athena Artificial Intelligence and Estonian Milrem Robotics to expand their AI capabilities.
Signed in June, the MoUs are expected to support the design and development of AI-enabled autonomous systems.
[Related: XTEK undertakes $7.7m capital raising]