ASX small-cap stock FBR Ltd (ASX: FBR) is frozen after the robotics company requested a trading halt so it could undertake a potential capital raise over the next two days.
FBR has requested that the halt remain in place until it makes another announcement or until Monday's trading commences. The robotics company did not provide any other information on the potential capital raise.
FBR shares are currently 4.8 cents, up 140% in just one month.
Let's take a look at what is driving this ASX small-cap stock's incredible share price rise.
ASX small-cap stock delivers big capital gains in 30 days
Previously known as Fastbrick Robotics, FBR designs, develops, and builds outdoor robots using its core Dynamic Stabilisation Technology (DST).
The first application of DST is a construction robot called Hadrian X. FBR says Hadrian X builds structural walls faster and more safely and accurately than humans.
So, what happened in July to send this ASX small-cap robotics stock 140% higher?
Well, there has been two lots of important news released this month.
Firstly, on 8 July, the company revealed that Hadrian X had arrived by ship in the United States. The company said it would be taken to a Site Acceptance Testing facility in Florida.
Investors liked the news and the ASX small-cap stock rose 33% as a result.
Completion of the Site Acceptance Testing will trigger a US$600,000 payment to FBR from CRH Ventures
Americas, Inc.
FBR has granted CRH Ventures an exclusive option for a joint venture to run FBR's business in the US. The business is called Wall as a Service and will provide Hadrian X robots to commercial builders on demand.
If CRH pursues the JV option, it will issue a binding but conditional purchase order for 20 Hadrian X units for US$2 million each.
After testing is completed in Florida, a demonstration program will begin with Hadrian X to construct the external walls of five to 10 single-storey houses.
What other news did FBR have for investors in July?
On 11 July, the company dropped its June quarter cash flow report, revealing a cash balance of $3.74 million (excluding cash guarantees) as of 30 June.
It also responded to a price query from the ASX.
This followed the ASX small-cap stock's 150% price rise from 1 July.
FBR said:
FBR believes the price movement and trading volume highlighted in ASX's Price Query letter may be in response to the progress made so far in the program with CRH Ventures, and in anticipation of progress to come in FBR's commercialisation and international expansion.
FBR also notes that the ship transporting the Hadrian X to the United States was easily identifiable and trackable using publicly available websites.
