The Titomic Ltd (ASX: TTT) share price has pushed higher on Monday morning following the announcement of an important contract win.
The advanced manufacturing company's shares were up as much as 6.5% to $2.60 in early trade but have since dropped back a touch and are 1.5% higher at the time of writing.
When its shares hit $2.60 it meant they had risen an impressive 53% since this time last year.
What was announced?
This morning Titomic announced that it has signed an agreement with The Boeing Company to deliver additively manufacturing (3D printed) test parts for airplanes.
According to the release, the initial trial agreement signed with Boeing is worth A$170,000 for the company.
Titomic's managing director, Jeff Lang, appeared to be very pleased with the agreement and sees a major opportunity for the company.
He said: "Titomic is pleased to announce this trial agreement with Boeing to deliver additively manufacturing test parts for airplanes. Currently, with traditional manufacturing process, there is up to an 80% material waste and 6-month lead time to CNC machine these parts. These Titomic Kinetic Fusion (TKF) produced parts will allow Boeing a significant reduction in lead-times, improved performance for composite part production and cycle times."
Should you invest?
I think Titomic is a very exciting company and well worth adding to your watchlist, especially following this Boeing agreement.
If the trial is a success and Boeing extends the agreement, it could prove to be a game-changer for Titomic.
However, I feel it is a little soon to invest and would suggest investors keep their powder dry for the time being and wait to see how this agreement develops.
For now, I think investors should take a look at fellow small cap tech shares Citadel Group Ltd (ASX: CGL) and LiveTiles Ltd (ASX: LVT).
