Fastbrick in $35m placement

22/11/2017 - 09:18

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Fastbrick Robotics has raised $35 million through a share placement as the Perth-based technology company continues to develop its commercial prototype Hadrian X bricklaying robots.

Fastbrick in $35m placement
Chief technical officer Mark Pivac (left) and chief executive Mike Pivac are buoyant about Fastbrick's future. Photo: Russell Barton

Fastbrick Robotics has raised $35 million through a share placement as the Perth-based technology company continues to develop its commercial prototype Hadrian X bricklaying robots.

The robots can lay up to 1,000 bricks an hour, about twice the daily output of a typical bricklayer, and the company is aiming to be able to construct the brick component of a house within three days.

Fastbrick will issue about 184 million shares at 19 cents per share, an 8.9 per cent discount, to a small group of international and domestic institutional investors.

The raising ensures Fastbrick is funded for the next two years including the launch of Hadrian X.

The funding will also allow the company to further invest and accelerate its intellectual property portfolio.

Chief executive Michael Pivac said the company was pleased with the support from the placement.

“Leading into 2018 and beyond, we are now well placed and confident to deliver on the company’s strategic objectives and key milestones,” he said

“Our immediate focus and attention is to finalise the procurement, assembly, testing and demonstration of our Hadrian X commercial prototypes.”

Fastbrick signed a memorandum of understanding with American machinery giant Caterpillar in July and Mr Pivac said the raising would allow this partnership to progress.

“We will continue to further develop and work with our global partner Caterpillar, to commercialise, manufacture and distribute the Hadrian X and jointly work on our customer discovery strategy and pilot programmes for our early adopters,” he said

“Beyond these immediate milestones, we will also look to bolster the company’s strength through the addition of senior management and investing in new IP.”

Bell Potter Securities managed the placement with the shares expected to be allotted on November 28.

The placement follows on from a $5 million capital raising at 2 cents a share back in 2015 when the company launched on the ASX and an $8 million placement in December last year at 8.1 cents per share.

Fastbrick shares finished up 7.5 per cent at 22 cents.

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