Robotic technology company FBR Limited (ASX: FBR) has completed the Demonstration Program with CRH Ventures in the US state of Florida.
Using the Hadrian X® and concrete masonry blocks supplied by an affiliate of CRH Ventures, FBR constructed the external walls of nine homes in the Demonstration Program, with one of the homes being built in a single day. Each structure was confirmed by independent structural engineers to meet applicable building standards.
Following the completion of nine structures and the achievement of the milestone of building the walls of a home in a single shift with only three personnel on site, FBR and CRH Ventures reached agreement that the capabilities of the Hadrian X® had been adequately demonstrated throughout the Demonstration Program and deemed the program complete. Further, the period of 45 calendar days for CRH Ventures to exercise its option to enter an exclusive joint venture with FBR for the supply of Wall as a Service® in the US commences by mutual agreement on 2 January 2025.
Following the completion of the Demonstration Program, US$400,000 became payable from CRH Ventures to FBR.
FBR and CRH Ventures intend to complete at least one home for major US builder PulteGroup under the previously announced Master Trade Contractor Agreement outside of the scope of the Demonstration Program as well as a home for Neal Communities, another prominent builder in south-west Florida.
Upon commencement of the potential joint venture, a binding conditional purchase order for 20 Hadrian X® construction robots will be submitted to FBR at a price of US$2 million per unit. Simultaneously, a US$40 million loan facility will be established by CRH Ventures that the joint venture entity can draw down on in tranches to pay for the manufacture and delivery of the Hadrian X® construction robots. FBR will also replace the unit used to conduct the Demonstration Program in the US with a US-spec unit at no additional cost to the joint venture.
Further to the announcement released to the ASX on 18 January 2024, FBR and CRH Ventures have considered the early stage cash requirements of the joint venture and agreed to make an initial working capital investment totalling US$500,000 to cover loan facility repayments ahead of delivery of US-spec Hadrian X® units, with deposits for two Hadrian X® units totalling US$2.2 million immediately payable to FBR upon formation of the joint venture. Another unit will be delivered as soon as possible after delivery of the initial two units, in addition to the replacement for the unit used to conduct the Demonstration Program. The remaining 17 units in the initial 20-unit purchase order will be delivered in tranches of three units after the joint venture meets the agreed performance milestones for each tranche.
Further conditional purchase orders of 39 Hadrian X® units and 40 Hadrian X® units will be submitted to FBR by the joint venture once defined metrics relating to gross margin and fleet utilisation are achieved (for more detail see ASX announcement dated 18 January 2024).
After supply of the first 100 Hadrian X® construction robots, the joint venture will be granted options to purchase an additional 200 Hadrian X units (40 options of five units) at the lesser of US$2.5 million each plus compounded CPI increases, or the price charged by FBR’s applicable third-party manufacturer, thereby providing a pathway to 300 Hadrian X units in the US.
