It has been a brutal day for shareholders of FBR Ltd (ASX: FBR) on Thursday.
After some major declines already this year, the small-cap robotics company's shares have crashed deep into the red again today.
At the time of writing, the ASX All Ords stock is down 41% to a 52-week low of just 1 cent.
This means that FBR's shares are now down over 80% from their 52-week high of 6.2 cents.
Why is this ASX All Ords stock crashing?
Investors have been hitting the sell button again today after the company announced a capital raising and major corporate restructure aimed at shoring up its balance sheet and repositioning it for future growth.
According to the release, the ASX All Ords stock has successfully completed a two-tranche institutional placement to raise approximately $6.3 million.
The issue price of 1 cent per share — a steep discount to its last close price — appears to have rattled investors.
The company plans to use the funds for working capital, restructuring costs, and ongoing development of its robotic bricklaying technology, Hadrian X.
Major reset underway
The ASX All Ords stock is now undertaking a full-scale cost rationalisation program to reduce its cash burn and focus on monetising its intellectual property.
As part of the overhaul, its workforce is being downsized to match current needs, director fees and executive salaries are being cut by 30%, the number of non-executive directors will be reduced by 25%, and operations are being consolidated to a single facility in Western Australia.
What's next for FBR?
Despite the funding crunch and strategic reset, FBR remains optimistic about its future.
It notes that it has engaged global strategic advisors to explore commercial partnerships, licensing, and scaling opportunities — particularly in the US market where its Hadrian X construction robot recently completed a successful demonstration program.
According to the company, inbound interest from the US is "stronger than ever" and it is now free to engage directly with prospective partners. It is also awaiting the outcome of a funding application with the federal government's National Reconstruction Fund.
The ASX All Ords stock's managing director and CEO, Mike Pivac, commented:
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, and everyone who has contributed to this program should be proud of what we have been able to achieve to date.
The adoption and scaling of such a technology, machine and product does not come without its challenges. We have been able to demonstrate what we believe to be the future of construction to potential industry partners and end users and the next important phase of the Company's journey has commenced.
