Fastbrick Robotics [ASX:FBR] has climbed more than 80% since the start of July. The amazing surge has seen the share price rise from 11 cents at the start of July to a high of 20 cents today.
What caused the July share price boom?
Fastbrick are known for their patented bricklaying robot. The machine bests its human counterpart at a rate of 5:1. Or, roughly 1,000 bricks an hour compared to the 200 a good bricklayer might provide.
As a result, on 3 July Fastbrick signed an agreement with Caterpillar Inc. [NYSE:CAT]. The US$64 billion machinery giant will help make and sell the bricklaying robots. A massive boon for Fastbrick.
The share price leapt up after the announcement, but has continued to climb more than a week later. While it is only a memorandum of understanding, meaning either party could pull out of the deal early, investors should be thrilled.
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What’s next for Fastbrick Robotics and Caterpillar Inc.?
Caterpillar seems committed, even investing US$2 million into Fastbrick. The funds will be allocated by a placement at AUD$0.10 per share. However there is also an option for Caterpillar to put in another US$8 million at AUD$0.20 per share. Which is subject to shareholder approval with 60 days.
While the collaboration is currently only slated for a 12-month term, the future looks good for Fastbrick. Backed up with a sizeable capital investment the company’s hard work appears to be paying off. Investor’s will no doubt be looking for exciting developments in the near future.
Junior Analyst, Money Morning
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