FBR executes binding US agreement with CRH Ventures Americas

• FBR (ASX:FBR) has signed binding agreements with CRH Ventures Americas, a subsidiary of CRH plc, one of the largest concrete block suppliers in the United States.
• The collaboration focuses on using FBR’s cutting-edge Hadrian X® construction robot to construct up to ten houses in the US as part of a Demonstration Program
• If all goes well, FBR has granted CRH Ventures an exclusive option to enter into a joint venture to supply 20 more robots, at a rolling payment of US$40 million
• Upon completing technology testing, CRH Ventures and Fastbrick Americas Engineering, a subsidiary of FBR, will begin a Demonstration Program
• FBR shares last traded at 2.7 cents

Robotic technology company FBR (ASX:FBR) has signed binding agreements with CRH Ventures Americas, a subsidiary of CRH plc, one of the largest concrete block suppliers in the United States.

The collaboration will focus on using FBR’s cutting-edge Hadrian X® construction robot to build up to ten houses in the US as part of a Demonstration Program for a one-time payment of US$2 million.

If all goes well, FBR has granted CRH Ventures an exclusive option to enter into a joint venture for the additional supply of Wall as a Service® in the United States, pending the completion of Demonstration Program milestones.

The joint venture would set up a substantial US$40 million rolling loan facility to facilitate the execution of a binding conditional purchase order for an initial batch of 20 Hadrian X® construction robot units.

“We have set a clear strategy for the company to enter the United States market, and we will be doing so with the assistance of one of the largest concrete block manufacturers in the country,’ FBR Managing Director and CEO Mike Pivac said.

“We are excited to arrive in a new international market to showcase the capabilities of our technology and commence our scaling plan with the financial and operational support of one of the world’s leaders in building materials production.”

Additional conditional purchase orders for 39 and 40 units are contingent upon meeting specific utilisation and gross margin metrics based on the performance of previously delivered Hadrian X® units.

Robotic testing

FBR must complete a Factory Acceptance Test at its premises in Perth on its Hadrian X® unit’s efficiency, targeting a lay rate of at least 285 blocks per hour.

The Site Acceptance Test, to be conducted outdoors at an agreed location in Florida, will mirror the Factory Acceptance Test’s requirements. An independent structural engineer will confirm that the constructed walls align with the design and meet relevant building standards.

Upon successful completion of the Site Acceptance Test, an affiliate of CRH Ventures and Fastbrick Americas Engineering, a subsidiary of FBR, will embark on a Demonstration Program in Florida.

Fastbrick Americas Engineering will be responsible for entering contracts for five houses in the Demonstration Program, while an affiliate of CRH Ventures will be tasked with the remaining five contracts.

An initial payment of 10 per cent of the US$2 million has been made, with subsequent payments of 40 per cent, 30 per cent, and the remaining 20 per cent scheduled upon the completion of robotic testing and the demonstration program.

FBR shares last traded at 2.7 cents.