The FBR Ltd (ASX: FBR) share price has started the week on a high.
In morning trade the robotics company’s shares are up over 4% to 7.6 cents.
Why is the FBR share price on the rise?
Investors have been buying the company’s shares this morning after it announced a building pilot program agreement between its Fastbrick Australia business and Western Australian builder Archistruct Builders & Designers.
According to the release, the building pilot program agreement with Archistruct consists of three stages.
The first stage is a demonstration stage under which Fastbrick Australia will supply Wall as a Service (WaaS) for between five and 12 house structures on FBR premises using a range of designs supplied by Archistruct. Each of these structures will be subject to inspection, assessment and reporting by both Archistruct and independent consultants to ensure they meet the relevant building standards.
Once complete, the next stage of the agreement is the display home stage. This will see the two parties enter into a contract under which Archistruct will build a display home using Fastbrick Australia’s blocklaying services, with the display home to be purchased by FBR.
However, if the parties do not enter into this agreement within three months of the completion of the demonstration stage, the remainder of the building pilot program agreement may be terminated.
But if things go to plan, the final part of the agreement will commence with the builder’s project stage. This will see Archistruct engage Fastbrick Australia to supply WaaS for a single storey residential structure under a building contract with a homebuyer.
The release advises that this engagement can be entered into as soon as the demonstration stage is completed and for up to 24 months thereafter.
FBR Australia’s chief executive officer, Simon Amos, appears to believe this is a very positive step forward for the company.
He said: “The Building Pilot Program with Archistruct is an important first step for the Fastbrick Australia joint venture, generating first revenues under the WaaS commercial model. An important part of the Building Pilot Program is that it helps to inform Archistruct about how the Hadrian X and WaaS impacts and improves the broader building process for residential homes, and enables them to prepare their business model and processes for the new world of robotic construction. We are glad to have them on the journey with us as the first builder to have purchased a series of robotically constructed wall structures of varying designs.”
It isn’t just the FBR share price which is on the rise on Monday. The Bellamy’s Australia Ltd (ASX: BAL) share price has rocketed higher after it received a takeover approach and the Beach Energy Ltd (ASX: BPT) share price has surged higher due to a sharp rise in oil futures following drone attacks on two key oil refineries in Saudi Arabia.
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