Why is the FBR (ASX:FBR) share price on ice today?

a woman in a business suit makes the hand signal in the shape of a time to represent time out, representative also of a trading halt

The FBR Ltd (ASX: FBR) share price isn’t moving at the moment because its shares are currently in a trading halt.

It’s currently finalising the details for a capital rising, which it is expecting to announce before the commencement of trading on Friday, 26 November 2021.

FBR’s capital raising

The robotic bricklaying business hasn’t officially released its announcement about the detail regarding the capital raising.

However, the Australian Financial Review had the inside scoop about what the money may be used for.

The AFR reported that FBR is looking to raise $10 million from investors to continue investing in its Hadrian bricklaying robotic technology.

Reportedly, the offer is for 222.2 million new shares at 4.5 cents per share, which was a 15% discount to the last closing price.

This money is going to be used for general working capital and to partially build tow more Hadrian bricklaying machines.

Ongoing progress

FBR has been making a number of announcements recently which have outlined the progress the business has made.

In the first quarter of FY22, it had record sales receipts of $621,000.

FBR has completed a few builds for customers – three residential and two low-rise commercial structures.

It has a pipeline of 24 confirmed upcoming builds for builders with expected revenue of over $1.1 million.

FBR said that an additional three builds in Wellard have been committed to complete the five home Wellard portfolio, with revenue of more than $2 million in FY23 expected from the sale of the five home portfolio.

Management boasted of a strong utilisation rate committed up to May 2022, with more future work expected to be added to maximise utilisation of both existing Hadrian prototypes.

Two additional Hadrian X robots are at the procurement stage.

International markets

FBR recently made an announcement regarding a non-binding term sheet for up to 5,000 homes in Mexico with GP Vivienda.

The bricklaying business also recently announced a market entry feasibility study for UAE with a memorandum of understanding with the Ministry of Energy and Infrastructure executed.

Management also boasted that it had unlocked the international clay block market, with the Hadrian X capable of laying the largest clay blocks currently in production, in addition to concrete blocks.

Research and development

The company said the next iteration of Hadrian X is under development, with a higher lay speed and a capability of handling even larger blocks with a longer reach.

Additional product revenue streams are also under development with multiple DST and digitalisation-related R&D projects underway.

FBR also recently received a R&D tax refund of $4 million, netting $1.4 million after the loan repayment.

FBR share price snapshot

Over the last month, FBR shares have risen by around 30% as it made a number of announcements mentioned in this article.

The post Why is the FBR (ASX:FBR) share price on ice today? appeared first on The Motley Fool Australia.

Should you invest $1,000 in FBR right now?

Before you consider FBR, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and FBR wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3FF49BK

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s