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Perth-based robotic bricklaying technology company FBR (ASX: FBR) has today announced a fully underwritten $8 million share purchase plan (SPP) for working capital to complete its home demonstration program in Florida, which as a milestone could trigger a strengthening of a partnership with CRH Ventures, a purchase order and a much larger debt facility.
FBR, formerly known as Fastbrick Robotics, struck a deal with CRH giving it an option to trigger a joint venture (JV) and hundreds of sales of its Hadrian X robots if the partner is satisfied with the results of a 10-home demonstration program in the United States.
Having successfully completed five of those homes in Fort Myers, Florida, which were confirmed by an independent engineer as compliant with the design and building code, FBR is currently in the midst of the second half of the program.
Fort Myers was heavily affected by Hurricane Milton last month, but all FBR safe in the area were confirmed as safe and the Hadrian X robot did not sustain any damage from the storm. In its recent quarterly update, the group confirmed all demonstration homes built to date were unaffected by the event.
Related story: Robotic tech group FBR completes first home build in US bricklaying demonstration
CRH Ventures, a subsidiary of CRH plc and one of the largest concrete block suppliers in the United States, may exercise its option to enter the Fastbrick Americas JV, also triggering a purchase order for 20 of FBR's Hadrian X robots while providing the joint venture with a US$40 million ($60.5 million) debt facility.
The SPP announced today by FBR is fully underwritten by Bell Potter Securities Limited, and sub-underwritten by institutional investors.
The shares are being offered at 3.8 cents each, which is the same level as a $12.5 million institutional offer that was completed in August although shares had risen slightly since then. Offers will open on 7 November and close on 26 November.
The sixth and seventh homes under the demonstration program are due for completion shortly, and are being built in conjunction with Florida builder New Century USA which was involved in the first build. Two of the homes in the demonstration program have been built for Christopher Alan Homes, another sizeable local company.
FBR has also entered into a master trade contractor agreement (MTCA) with PulteGroup (NYSE:PHM), involving at least one demonstration home as part of the program.
The group reported receipts from customers of $1.3 million in the September quarter, compared to just $100,000 in the three months prior. Around $900,000 of the uptick can be attributed option fees from CRH Ventures Americas for site acceptance testing, and $400,000 for the sale of residential land held in Western Australia.
FBR spent $4.5 million on payroll in the quarter, $2 million on Hadrian X technology development, and $1.2 million on the demonstration program, leaving it with a cash balance of $10.2 million at the end of September.
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