FBR Limited (ASX:FBR) Completes $6.3M Placement and Announces Corporate Restructuring
Placement Completion
FBR Limited has successfully raised A$6.3 million through a two-tranche placement at A$0.01 per share, supported by Australian and international institutional investors. The funds will enhance working capital and support restructuring and development costs.
Corporate Restructuring
The company has embarked on a cost rationalisation programme, aiming to reduce annual costs by approximately 70%. This includes a significant reduction in headcount, a 30% cut in directors’ and founders’ salaries, and a 25% decrease in Non-Executive Directors. The restructuring is expected to cost around A$2.3 million and will create a more sustainable cost base.
Strategic Partnerships and Market Expansion
FBR is in discussions with stakeholders in the steel, mining, energy, and construction industries to develop robotic solutions using its technology and R&D capabilities. The company remains focused on multiple near-term catalysts, including the continuation of the Hadrian X market entry strategy with Liebherr and the commencement of Phase 1 with Samsung Heavy Industries.
Executive Comments
FBR’s Managing Director and CEO, Mike Pivac, stated, “The entire Team at FBR has worked tirelessly over the years to develop, manufacture, demonstrate and operate what we believe to be some of the world’s most advanced construction robots… We are always looking at ways to improve our products, our commercial offerings, our strategies and our organisation as a whole.”
Motley Fool contributor Abbie Stokes 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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