FBR Limited secures A$4 million through a discounted placement and share purchase plan to fund development and deployment of its DST-enabled robotics products, including Mantis welding and Hadrian bricklaying robots.
- A$1.5 million placement at A$0.115 per share with attached options
- Up to A$2.5 million share purchase plan fully underwritten
- Funds to complete testing, demonstrations, and repay debt
- Focus on commercialising Mantis welding and Hadrian bricklaying robots
- CEO and COO participating in the share purchase plan
Capital Raise Targets Robotics Commercialisation
FBR Limited (ASX:FBR) has secured firm commitments for a A$1.5 million placement priced at A$0.115 per share, representing a 20.7% discount to the last close. This placement will be followed by a fully underwritten share purchase plan (SPP) aiming to raise up to A$2.5 million, bringing total capital raised to A$4 million. Both initiatives include attaching options exercisable at A$0.14, subject to shareholder approval.
The proceeds are earmarked to advance Factory Acceptance Testing and commercial demonstrations of the Mantis™ welding robot, which targets heavy fabrication sectors such as shipbuilding, mining, and defence. The company also plans to accelerate deployment of the Hadrian® bricklaying robot in Western Australia, aiming to address critical labour shortages in the construction industry.
Strategic Focus on DST and AI Robotics
Central to FBR’s technology is its Dynamic Stabilisation Technology® (DST®), which enables large-scale robots to perform precise tasks outdoors. CEO Mark Pivac highlighted the potential of DST® combined with AI-driven programming to tackle bottlenecks caused by labour shortages across construction, welding, and steelmaking industries. "Our team has made great progress with commissioning and early demonstrations of Mantis™ and its high deposition twin wire welding," Pivac said.
FBR is preparing to demonstrate Mantis™ to major global customers, including shipyards and defence suppliers, before deploying the first unit in the USA following upcoming testing. The company also anticipates that Hadrian® will verify its commercial modelling on Australian building sites, addressing the long-term housing supply crisis.
Placement and SPP Details with Shareholder Incentives
The placement involves issuing approximately 13 million shares at A$0.115 each, with one free option per share issued. These options, exercisable at A$0.14 over five years, require shareholder approval. The SPP offers eligible Australian and New Zealand shareholders the chance to purchase shares between A$1,000 and A$30,000 at the lower of A$0.115 or a 2.5% discount to the VWAP prior to closing. SPP participants will receive one option per share subscribed, also subject to approval.
FBR’s CEO and COO have committed to participate in the SPP, signalling confidence in the company’s growth trajectory. The SPP is fully underwritten, with any shortfall to be placed under existing capacity or subject to shareholder approval.
Use of Funds and Financial Position
Beyond product development, the capital raise will help repay short-term debt facilities and bolster general working capital. This comes as FBR prepares to scale commercial operations amid ongoing supply chain and labour challenges in its target markets. The company retains flexibility in fund allocation, with the board reserving the right to adjust spending in response to evolving circumstances.
Lead managers Alpine Capital and Peak Asset Management will receive fees and options linked to the placement, pending shareholder approval. The placement shares will rank equally with existing shares from issue.
Bottom Line?
FBR’s capital raise strengthens its runway to commercialise DST-powered robotics amid labour shortages, but execution risk remains as shareholder approvals and market adoption loom.
Questions in the middle?
- Will shareholder approval be granted for the attached options and broker shares?
- How soon will Mantis™ deployment in the USA translate into revenue streams?
- Can Hadrian® effectively address Australia's construction labour shortages at scale?