The company has signed an SICP grant agreement from the Centre for Defence Industry Capability (CDIC), on behalf of Australia's Department of Defence.
This grant program provides funding to support Australian small-to-medium enterprises (SME) in supplying capabilities that are most critical to defence.
The grant represents validation and recognition from the Australian Department of Defence of XTEK’s capability and performance of its helmet design and the importance of establishing its manufacture as a sovereign industry capability.
It also compliments a previous SICP grant of $1 million to establish the ballistic armour manufacturing centre in Adelaide, which provides a commercial manufacturing capability for XTEK’s proprietary XTclave™ products for up to $20 million revenue.
Managing director Phillippe Odouard said: “We are pleased to be a recipient of the SICP Grant, representing continued support and validation by the Australian Department of Defence of the advanced capabilities of our XTclave manufactured ballistic armour.
“The funding supports the execution of our broader strategy to commercialise our state-of-the-art technology by enhancing the production and testing capability for our proprietary ballistic helmets.
“Combined with our new manufacturing centre and recent US acquisition, XTEK is extremely well-positioned to capitalise on key commercial opportunities.”
XTEK has also recently acquired HighCom Armour Solutions Inc, a successful and profitable provider of proprietary body armour and personal protective equipment focused on the US market.
This acquisition provides a clear path for XTEK to expand into the lucrative US market, executing its strategy and accelerating the commercialisation of its ballistic solutions by leveraging HighCom’s established network and existing business.
Shares are 6 per cent higher at 53 cents, up from 39.5 cents at close on March 23.