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%.
