FBR Raises $8M, Wins $6.3M Tax Rebate, Builds Nine US Homes with Hadrian X®
FBR Limited has successfully completed its US Demonstration Program with CRH Ventures, raising $8 million through a Share Purchase Plan and positioning itself for a significant joint venture in the US construction robotics market.
- Completion of US Demonstration Program with CRH Ventures
- Construction of external walls for nine homes, including one built in a single day
- Receipt of A$6.3 million R&D tax incentive rebate
- Raised A$8 million via fully underwritten Share Purchase Plan
- Potential joint venture with CRH Ventures involving purchase of 20 Hadrian X robots
Demonstration Program Milestone Achieved
Robotic technology innovator FBR Limited (ASX: FBR) has marked a pivotal moment in its US expansion strategy by completing the Demonstration Program with CRH Ventures. The program showcased the capabilities of FBR's Hadrian X® bricklaying robot, successfully constructing the external walls of nine homes in Florida, with one home’s walls completed in a single shift. Independent structural engineers confirmed all builds met applicable standards, underscoring the technology’s readiness for commercial deployment.
Strategic Funding and Financial Position
Alongside operational progress, FBR bolstered its financial footing by raising A$8 million through a fully underwritten Share Purchase Plan, priced at a discount to market, reflecting strong shareholder support. The company also received a substantial A$6.3 million R&D tax incentive rebate from the Australian Taxation Office, which after repaying a revolving loan facility, left FBR with an additional A$2 million in cash reserves. These funds are critical as FBR ramps up manufacturing and development activities.
Pathway to a US Joint Venture
Following the Demonstration Program, CRH Ventures has initiated a 45-day option period to enter an exclusive joint venture with FBR for the supply of Wall as a Service® in the US market. The joint venture is expected to place a conditional purchase order for 20 Hadrian X® robots at US$2 million each, supported by a US$40 million loan facility to fund production and delivery. FBR will also upgrade the demonstration unit to a US-spec model at no additional cost, signaling a commitment to tailored solutions for the American construction sector.
Ongoing US Construction Projects
Beyond the Demonstration Program, FBR and CRH Ventures plan to complete additional homes for major US builders such as PulteGroup and Neal Communities. These projects will further validate the technology’s commercial viability and operational efficiency in real-world settings, potentially accelerating adoption among large-scale builders.
Operational Costs and Cash Flow
FBR’s December quarter saw increased expenditure, with A$6 million spent on payroll and corporate costs, and A$3.6 million invested directly in Hadrian X® development and manufacturing. Despite a reduction in customer receipts compared to the previous quarter, the company’s cash position remains stable, supported by recent funding and tax incentives. Management acknowledges the need for ongoing capital and is actively engaging stakeholders to secure future funding aligned with operational demands.
Leadership Incentives and Future Outlook
In a move to align executive incentives with company performance, FBR issued 75 million unlisted Share Performance Rights each to Executive Directors Mike Pivac and Mark Pivac, contingent on performance milestones. This underscores management’s confidence in the company’s growth trajectory as it navigates the transition from demonstration to commercialisation in the US market.
Bottom Line?
FBR’s successful US Demonstration Program and fresh capital injection set the stage for a transformative joint venture, but execution risks remain as the company scales.
Questions in the middle?
- Will CRH Ventures exercise its option to form the joint venture and meet the performance milestones?
- How quickly can FBR scale manufacturing to meet the conditional purchase orders for Hadrian X® robots?
- What impact will the increased operational costs have on FBR’s cash runway and funding needs?
