The “as-a-Service” market is a thriving one. Nearly everything is an aaS, be it network, software or even walls. Specifically, robotic tech company FBR (formerly Fastbrick Robotics) (ASX: FBR) will be deploying robots to build a wall(s) for the USA, not the kind it is infamous for, of course.
FBR—known for its bricklaying robots—has struck a deal with UK-based M&G Investment Management, wherein the latter will buy 277 million shares in FBR for $9.14 million. The money will be used to manufacture and deploy three new Hadrian X robots in the USA quickly.
The robots will be built on USA truck bases and will then be immediately deployed to offer Wall-as-a-Service (WaaS) via the existing Fastbrick Americas entity. Hadrian X is FBR’s latest creation which can build a whole house in just a day, laying up to 500 blocks per hour. Seeing its capabilities, the Company plans on expanding the technology to undertake complete construction activities beyond just laying bricks.
FBR Managing Director and Chief Executive Officer, Mike Pivac, said, “The Agreement with M & G provides FBR with the funding to manufacture another three next-generation Hadrian X machines to bring our technology to the USA, to pursue meaningful revenue for FBR with builders who have been eagerly anticipating the arrival of the Hadrian X.”
Pivac added, “With one Australian-spec next-generation Hadrian X unit already assembled and laying its first blocks, another mid-assembly, and these three additional USA-spec Hadrian X® units, we are building a fleet of Hadrian X robots that will transition the construction industry toward a more sustainable footing, by providing a faster, safer, less wasteful, more accurate and, ultimately, cheaper solution.”
The Company recently achieved the International Code Council (ICC) certification for the USA, enabling FBR to expand its robots into the American market. It’s a great revenue opportunity there as the developer, producer and operator of the world’s most advanced and capable construction robots. As robots take over human labour, making the process faster and more efficient, the Company expects the USA to be one of the top adopters, poising it for profitability.
FBR has agreed to issue 227 million new shares at $0.033 per share to M&G on March 17, 2023. Plus, M&G has agreed to buy 50 million shares from Mark Pivac and Michael Pivac for $1.65 million, subject to certain requirements. The proceeds from the sale of these shares will go to FBR as part repayment of outstanding loans and for the manufacture and deployment of new Hadrian X robots.
During the first half of FY23, the company experienced a 43% increase in losses, totalling $13 million, while also achieving a 22% growth in revenue, bringing it to over $650,000. Despite this revenue growth, the Group saw significant cash outflows from operating and investing activities, coming to over $16 million. Even though the Company’s revenue is growing, it is also experiencing significant expenses that are impacting its overall financial performance.
With this next gen of Hadrian X, FBR’s fortune could turn around. Recently, it was unveiled that the robot could go through the whole brick-laying process without any human intervention. This could save companies, potentially, millions of dollars that they would spend on training and benefits. Plus, as it creates lesser waste, it could also help with sustainability goals.
Alinda is a Business Reporter for The Sentiment
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