Fastbrick capital raise delay averted

Bricklaying robot builder Fastbrick’s plan for a major capital raise were almost crushed until the government’s takeover panel stepped in.

The robotics firm had raised $6.3 million through a placement to major investors, including global funds like Fidelity International, to help the company after it suffered a massive 49% stock crash in February following a failed joint venture.

The potential JV, with US company CRH Ventures, would have included an order for 20 of its bricklaying robots at $US2 million for unit. The agreement then included the option for an additional 300 units. This could have brought in between $US700 million, or more than AUD$1 billion.

Following the failure of this JV, the company underwent a restructure, with CEO Mike Pivac handing the role to his cousin and chief technology officer Mark Pivac, and trimming 70% of its company headcount.

FBR needed a second tranche of the deal to be approved by shareholders during a meeting on Tuesday, however, one shareholder – Bob Ciesla – approached the government Takeover Panel to hit pause on the move.

The company has since overwhelmingly voted to move ahead and close the Fidelity deal.