RBO announces capital raising to fulfil $2M pipeline
Emerging 3D printing company, Robo 3D Limited (ASX:RBO), announced yesterday that it will complete a capital raising of $800,000 to support additional production runs for its higher than anticipated pre-order pipeline of $2 million for the December quarter.
The pipeline of orders, coming from RBO’s key channel partners, results largely from the general release of the Robo R2 smart 3D printer in June 2017, and is great news for management and investors. However, it requires access to extra funds to support the increased production runs – a timely cash injection of $800,000 should therefore see the company through this acceleration in growth.
With a market capitalisation of just $8.6 million, a large pipeline of pre-orders and a successful capital raising puts RBO in good stead for the current quarter and beyond.
It should be noted, however, that this is an early stage tech company and success is no guarantee. Investors should seek professional financial advice before making an investment.
The company has never had $2 million in its pre-order pipeline before, representing a sharp uptake in demand. As such, the December quarter is likely to be transformative for this small cap tech play, producing more opportunities for potentially market-moving news flow.
As pre-orders are still subject to cancellation, RBO has allowed for some flexibility; as such, the $800,000 capital raising comes with an option to expand that amount by an additional $1 million, contingent on shareholder approval.
In relation to the capital raising, Robo’s CEO Ryan Legudi said: “We are delighted with the fast-paced growth and demand for Robo’s product line up, as evident in the record pipeline of pre-orders and expected growth over the next quarter.
“This is validation of the high calibre of Robo’s products as well as the Company’s strategic approach to key channel partners over the last six months. We are also pleased at the support from existing and new shareholders for this capital raising, which provides funding to enable further growth over the coming months.”
RBO has engaged Hunter Capital Advisors as corporate advisors and lead managers for the capital raising.
The capital raising terms comprise a share placement – $400,000 at an issue price of A$0.060 per share resulting in the issuance of 6,666,667 new RBO shares – and the issuance of Convertible Notes to the value of $400,000, issued at $1.00 per note with a face value of $1.10 per note.
Short-term positions in small, early stage ASX companies,
with high potential and near term price catalysts.
Focusing on resource exploration, early-stage tech, and biotech.
Exceptional opportunities across a broad range of
early-stage growth sectors with strong management.
Seeking 1,000% plus returns across medium to long-term holds.
Longer-term positions in a variety of sectors.
Seeking strong management where traction is established and have entered into a growth phase.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.