FBR Limited (ASX: FBR), a robotic technology company focused on designing, developing and building dynamically stabilised robots, has secured a Share Subscription Facility (SSF) of up to A$20 million with GEM Global Yield LLC SCS. The agreement, announced on Tuesday, allows FBR to draw down funds in tranches over a three-year period in exchange for issuing new shares to GEM. There is no minimum drawdown obligation.
The SSF provides FBR with working capital at its discretion. The volume of shares in a drawdown request is limited to 1000% of the average daily volume of the preceding 15 trading days. GEM may subscribe for between 50% and 200% of the drawdown request volume. Drawdowns will occur at a price equivalent to 90% of the average daily VWAP during the 15-day pricing period, with FBR able to set a minimum drawdown price.
In consideration for the SSF, FBR will issue options to GEM to purchase up to 450 million shares exercisable at A$0.01, with a three-year term. FBR will also pay GEM a facility fee of 1.8%, payable in cash or shares, and legal fees of up to A$40,000. The company has also appointed Peak Asset Management as its corporate advisor. FBR CEO Mark Pivac stated that this funding will allow FBR to execute its growth strategy and commercialise its Hadrian X and DST-enabled automation solutions, including the Mantis welding robot.
