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.
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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