The Field Solutions Holdings Ltd (ASX: FSG) share price is rising during late afternoon trade. This comes after the regional telco carrier announced it's received additional funding from the federal government.
Heading towards market close, the Field Solutions share price is up 6.67% to an intraday high of 16 cents.
What did Field Solutions update the ASX with?
Investors are buying Field Solutions shares following the company's latest release.
In a statement to the ASX, Field Solutions advised it has received $4.1 million from the federal government's Regional Connectivity Program Fund (RCP).
The Regional Connectivity Program Round 2 (RCP2) is a $106 million investment initiative to develop telecommunications infrastructure projects outside major cities. It's targeted at partnering with companies such as Field Solutions to provide connectivity for rural, regional and remote areas.
According to its statement, Field Solutions has been awarded further funding to build network infrastructure across four local government areas. They include regional towns Bourke, Carrathool, and Leeton in New South Wales, as well as Mareeba in Queensland.
Construction is scheduled to begin in September 2021, with revenue generated from the networks expected from H2 FY22 onwards. Field Solutions estimates revenue of roughly $11 million over the 7-year period through its build, own and operate agreements.
Pleasingly, the company noted it's been successful in 90% of its RCP applications and has been awarded a quarter of the total funding pool. This includes the previous Regional Connectivity Program Round 1 (RCP1), which saw $83 million handed out to deliver next-generation regional connectivity.
Field Solutions CEO Andrew Roberts commented:
These new networks will be the catalyst for FSG to deliver the next generation of rural connectivity, enabling 5G, mobility and IoT specifically for agribusiness and rural, regional and remote Australia.
We look forward to working with many underserviced local communities as part of RCP2.
Field Solutions share price summary
Field Solutions shares have accelerated by more than 370% during the last 12 months, and are up by 260% year-to-date. The company's share price reached a multi-year high of 21 cents last month, before some profit taking took place.
Based on current valuation, Field Solutions has a market capitalisation of about $89 million.
