Field Solutions Holdings Ltd (ASX: FSG) shares are rocketing higher today following announcement of the company's latest government funding award. At the time of writing, the Field Solutions share price is sitting at 6.9 cents, up 15%.
What did Field Solutions announce?
The Field Solutions share price is on the run after the company announced it has been selected for a government funding program.
According to its release, Field Solutions advised it has been awarded $2.1 million in government funding. The funds were approved under the third round of the Digital Farm Grants Program by the Western Australia Government's Department of Primary Industries and Regional Development.
The Digital Farm Grants program is aimed at improving business and agricultural productivity through linking communities to the NBN in rural Western Australia. The state government is aiming to see expanded mobile coverage to support farming businesses in accessing smart farming technologies and practises.
Field Solutions revealed that the funds received will be allocated towards building its infrastructure in rural areas across Western Australia. This includes extending its network assets across the Grainbelt region. The Grainbelt region covers over 3,000 properties and businesses that have limited internet access.
The project is expected to commence in May this year, with revenues to flow sometime in the first half of FY22. The company estimates that over a 10 year period, it will accumulate revenues of roughly $27 million.
CEO commentary
Field Solutions CEO Andrew Roberts touched on a number of points, saying:
The awarding of the Digital Farm Grant has reinforced our decision to deliver services in WA.
The WA market is well suited to our fixed wireless infrastructure approach to serve rural, regional and remote communities and business.
We are currently expanding our network across southern and central Queensland. Once complete, our total surface area covered will be over 81,000 squared kilometres. This project in Western Australia will extend our network adding 8,000 squared kilometres to our coverage.
Our immediate focus is on the successful delivery of these new networks, however, concurrently we will be offering our complete suite of products, taking advantage of our nationwide network.
About the Field Solutions share price
The Field Solutions share price has risen over 270% in the last 12 months, reflecting positive investor sentiment.
Field Solutions shares had reached a 52 week low of 1.8 cents in March 2020. Based on the current share price, the company has a market capitalisation of around $39 million.
