Why the FBR Ltd share price is down 15% today

Here's why the FBR Ltd (ASX: FBR) share price has plunged 15% today

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The FBR Ltd (ASX: FBR) share price is down 15.09% to 4.5 cents per share at the time of writing after coming out of the trading halt it has been in since Monday.

The FBR (formerly Fastbrick Robotics Ltd) share price closed at 5.3 cents per share on Monday afternoon, but opened again this morning at 4.9 cents per share and has fallen further to the current level during trading today.

Why is the FBR share price dropping?

Today's drop can be attributed to the company's recently-announced capital raising program – which is also why the shares were halted for trading this week.

In an announcement to the ASX this morning, FBR confirmed the successful placement of 122.22 million shares with "a small group of international and domestic institutional and sophisticated investors at a price of 4.5 cents per share, raising $5.5 million.

FBR Ltd also announced a 'Share Purchase Plan' for its existing shareholders. This offer will allow all shareholders to purchase "between $1,000 and $30,000 worth of FBR shares" at the same price of 4.5 cents per share. The company hopes to additionally raise "up to $5 million" from the Share Purchase Plan.

This offer opens tomorrow and will close on Monday, December 23, 2019, and any shareholder who was registered as an owner as of Wednesday, December 4 will be eligible to participate.

FBR stated that it plans to use these raised funds for "working capital as we introduce the Wall as a Service offering to the Australian market and the world" as well as progress its Hadrian X product.

Today's FBR share price represents a new 52-week low for the company as well as its lowest share price since August 2016.

Over the last 12 months, FBR Ltd shares have fallen more than 67%, compared to the S&P/ASX 200 (INDEXASX: XJO) which has gained around 17.6%. 

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Broker Notes

These ASX 200 shares could rise 50% to 60%

Brokers believe these shares could deliver big returns for investors.

Read more »

A girl is handed an oversized ice cream cone with lots of different flavours.
Best Shares

8 ASX All Ords shares that tripled in value in FY25

Just 8 out of the 500 companies making up the ASX All Ords achieved share price growth of 200% or…

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Woman with a scared look has hands on her face.
Broker Notes

Bapcor shares fell more than 30% yesterday. Should investors buy in the dip?

Is this a value opportunity?

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Broker Notes

Broker raises price targets on 2 ASX 200 shares to buy

Ord Minnett has just upped its 12-month share price targets on 2 buy-rated ASX 200 stocks.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 34% on strong earnings growth

Investors just sent this ASX All Ords stock surging 34%. Here’s what’s happening.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why DroneShield, Gentrack, Metals X, and Northern Star shares are tumbling today

These shares are ending the week in the red. But why?

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Gainers

Why Dimerix, Newmont, Regal Partners, and Titomic shares are storming higher

These shares are having a good finish to the week. Let's see why.

Read more »