VEEM Limited (ASX: VEE) has successfully completed a $14 million institutional placement to support accelerated growth in the defence sector. Proceeds will strengthen the company’s balance sheet and fund working capital as VEEM builds on recent strategic momentum within global defence supply chains.
A key development underpinning the raise is the signing of a 9-year Manufacturing Licence Agreement (MLA) with Northrop Grumman, valued initially at up to US$33 million. This milestone positions VEEM within the United States’ Virginia Class Submarine Program and complements its recent agreement with Huntington Ingalls Industries – Newport News Shipbuilding (HII-NNS). VEEM has now achieved Level 1 accreditation with HII-NNS—one of the highest supplier status levels in the U.S. defence system—and has received its first request for quote (RFQ).
Further bolstering VEEM’s defence trajectory is the appointment of former Austal Managing Director, David Singleton, to the VEEM Board as a Non-Executive Director. With over 25 years of defence sector experience, Singleton’s insights will guide VEEM’s continuing integration into U.S. and Australian submarine and shipbuilding programs.
The Placement was strongly supported by VEEM’s largest shareholder, the Miocevich family, as well as major institutional investor Perennial. The capital raise reinforces VEEM’s position as a qualified Australian sovereign supplier with proven manufacturing capabilities to meet the stringent requirements of U.S. and Australian defence procurement.
Read the full announcement:
VEEM completes $14 million placement and signs Northrop Grumman manufacturing licence agreement
Northrop Grumman
Global aerospace and defence technology leader
🔗 https://www.northropgrumman.com
Huntington Ingalls Industries – Newport News Shipbuilding (HII-NNS)
Largest military shipbuilding company in the U.S.
🔗 https://hii.com/what-we-do/newport-news-shipbuilding
Morgans Financial Partners
Joint lead manager
Morgans Financial Limited
Perennial Partners
Australian investment management firm
🔗 https://www.perennial.net.au
David Singleton
Former Managing Director of Austal
🔗 https://www.austal.com
