Aurora Labs secures $550,000 R&D loan facility to scale defence propulsion production
Aurora Labs (ASX:A3D) has entered into a $550,000 short-term loan facility agreement with Kashcade RD1 Pty Ltd. The funding provides working capital to support production scaling of Aurora’s proprietary Micro Gas Turbine (MGT) propulsion systems for defence applications.
The facility has been established against the Company’s anticipated FY26 R&D tax rebate, with repayment sourced from the expected refund.
When big ASX news breaks, our subscribers know first
Inside the loan facility terms
The agreement sets out clear, short-term mechanics tied directly to the Company’s anticipated R&D tax refund. Key terms of the facility include:
-
Loan amount: $550,000
-
Lender: Kashcade RD1 Pty Ltd
-
Interest: 1.38% per month, accruing daily and capitalising monthly
-
Repayment: principal plus interest, repaid on the maturity date
-
Initial maturity date: 31 October 2026, extendable by an additional 30-day period at the Lender’s absolute discretion
-
Repayment source: the R&D tax refund, expected in the September 2026 Quarter
What the R&D Tax Incentive loan means
For Aurora, the arrangement means capital can be deployed into production scaling now, rather than waiting for the R&D tax refund expected in the September 2026 Quarter. The facility effectively brings forward access to funds the Company anticipates receiving in the current financial year.
Why it matters for A3D’s defence strategy
Aurora Labs is an industrial technology and innovation company specialising in 3D metal printed parts for industrial applications, the development of 3D metal printers, and associated intellectual property. The Company is developing advanced propulsion systems for Unmanned Aerial Systems (UAS) for the Defence sector.
The new working capital is directed at production scaling of its Micro Gas Turbine (MGT) propulsion systems, the proprietary technology at the centre of Aurora’s defence-focused development work.
MGT production scaling is also being supported by a separate $1 million Defence Industry Development Grant under the Sovereign Industrial Priorities Stream, which Aurora matched dollar-for-dollar to fund a large-format industrial metal 3D printer at its Canning Vale facility.
| Facility detail | Figure | Impact for investors |
|---|---|---|
| Loan amount | $550,000 | Working capital for MGT production scaling |
| Repayment source | FY26 R&D tax refund | Repaid from tax refund |
| Expected refund timing | September 2026 Quarter | Aligns with loan repayment |
Next steps and timeline
The loan is expected to be repaid from the R&D tax refund anticipated in the September 2026 Quarter, with an initial maturity date of 31 October 2026. That date can be extended by an additional 30-day period at the Lender’s absolute discretion.
In the near term, the funding supports ongoing production scaling of Aurora’s MGT propulsion systems for defence applications, providing working capital ahead of the anticipated refund.
The production ramp also feeds Aurora’s European defence partnership, formalised through a three-year Teaming Agreement with MBDA, the missile group owned by Airbus, BAE Systems, and Leonardo, to develop 3D-printed propulsion technologies for next-generation weapons platforms.
Don’t Miss the Next Defence Tech Breakout
Big News Blast delivers FREE breaking ASX news straight to your inbox within minutes of release, complete with in-depth analysis already done for you. Over 20,000+ subscribers stay ahead of the market with real-time alerts across defence, tech, healthcare, and more. Click the “Free Alerts” button at StockWire X to start receiving alerts the moment news breaks.