FBR Limited Secures Up To A$20 Million Through Share Subscription Facility
FBR Limited (ASX:FBR)
Robotic technology company FBR Limited (ASX: FBR; OTCQB:FBRKF) (‘FBR’ or ‘the Company’) advises execution of a financing agreement with GEM Global Yield LLC SCS (‘GEM’) for up to A$20 million through a Share Subscription Facility (‘SSF’) over a three-year period. FBR has also appointed Peak Asset Management as its corporate advisor.
The SSF is a funding facility providing working capital at the Company’s discretion. Pursuant to the SSF, the Company may draw down funds in tranches in exchange for issuing new shares to GEM over the three-year period. There is no minimum drawdown obligation.
The SSF sets out a process whereby FBR can issue a drawdown notice, subject to certain conditions, specifying the number of shares to be drawn. The volume of shares in a drawdown request is limited to 1000% of the average daily volume of the preceding 15 trading days. GEM may subscribe for between 50% and 200% of the drawdown request volume. The issuance of a drawdown notice commences a period of 15 consecutive trading days (‘Draw Down Pricing Period’). The subsequent trading day after the Draw Down Pricing Period, a drawdown will occur at a price equivalent to 90% of the average daily VWAP (‘Volume Weighted Average Price’) price during the Draw Down Pricing Period (‘Purchase Price’). FBR may set a minimum drawdown price. The issue of shares to GEM pursuant to a drawdown notice is conditional on FBR having sufficient placement capacity under Listing Rules 7.1 or 7.1A (as applicable) or obtaining requisite shareholder approval for the issue. A loan of the drawdown amount of shares to GEM upon giving a drawdown notice will be made with loan shares returned to the lender, or paid for, on the day after the conclusion of the pricing period.
In consideration for the SSF, FBR will issue options with a three year term to GEM to purchase up to 450 million shares exercisable at A$0.01. FBR will also pay GEM and a facility fee of 1.8% payable in cash or shares at FBR’s election at an issue price equal to the average daily VWAP of shares during the 15 consecutive trading days preceding the date for payment of the facility fee and legal fees of up to A$40,000.
FBR CEO Mark Pivac said: “With this funding initiative in place, FBR has the capital resources required to deliver on the Company’s stated growth strategy. This includes realisation of the multiple commercial opportunities now available to FBR including the innovative Hadrian X® and DST®-enabled automation solutions technology platform – both in building construction and exciting new verticals like ship-building. The success of these projects will demonstrate commercial viability of FBR’s product offering and aid transition of the Company into a sustainable business.
This funding will also be used for the development and commercialisation of R&D projects to further expand and monetise FBR’s IP portfolio. Thus capitalising on the already large and growing addressable market for robotic products developed from the Company’s technology platform. The latest deliverable being the DST®- enabled welding robot ‘Mantis’. Mantis provides enhanced automation efficiency potential to a number of industrial segments, including large scale fabrication, mining and shipbuilding. This new funding facility is part of an overall funding strategy and we look forward to updating the market on further commercialisation strategy deliverables over coming months.”
About us:
About FBR Limited
FBR Limited (ASX: FBR; OTCQB: FBRKF) designs, develops and builds dynamically stabilised robots to address global needs in a safer, more efficient and more sustainable way. These robots are designed to work outdoors or at large sizes using the company’s core Dynamic Stabilisation Technology®(DST®).
Applications of DST® include the Hadrian X® and Mantis™. Hadrian X® is a bricklaying robot that builds structural walls faster, safer, more accurately and with less wastage than traditional manual methods. The Hadrian X® provides Wall as a Service®, FBR’s unique commercial offering, to builders on demand. Hadrian robots are available for purchase by order. Mantis™ is a high deposition welding robot for the large-scale metal fabrication industries such as mining, shipbuilding and defence manufacture.
To learn more please visit www.fbr.com.au
About GEM
Global Emerging Markets (‘GEM’) is a $3.4 billion private equity and alternative investment group with offices in Paris, New York, and Nassau (Bahamas). GEM manages a diverse set of investment vehicles focused on emerging markets and has completed over 590 transactions in 75 countries. Its family of funds and investment vehicles provide GEM and its partners with exposure to: Small-Mid Cap Management Buyouts, Private Investments in Public Equities, and select venture investments.
https://www.gemny.com
Contact details:
For more information, please contact:
Kiel Chivers
Chief Operating Officer
T: +61 8 9380 0240
[email protected]
Investor Relations
The Capital Network
Julia Maguire
T: +61 2 7257 7338
E: [email protected]