ASX Robotics stock FBR Ltd (ASX: FBR) has leapt into the green on Wednesday after the company advised it hit a major milestone in its US operations.
At the time of writing, shares in the company that designs and builds industrial robots are swapping hands at 4.2 cents apiece, nearly 14% higher.
Meanwhile, the benchmark S&P/ASX 200 index (ASX: XJO) is up less than 1%.
Let's take a look at what the ASX robotic stock announced.
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ASX robotic stock clears testing
FBR announced today that its next-generation Hadrian X robot successfully completed site acceptance testing (SAT) at a demonstration facility in Fort Myers, Florida.
The Hadrian X is the company's "precision construction robot". According to the ASX robotics stock's website, it is "the world's first mobile robotic blocklaying machine and system, capable of safely working outdoors in uncontrolled environments with speed and accuracy".
Hadrian X reportedly passed rigorous testing, confirmed by an independent structural engineer.
Testing verified that the robot-built structure met all design and building standards. This achievement triggers a US$600,000 payment from CRH Ventures, its partner in the testing.
With the successful test behind it, the ASX robotics stock is set to begin its demonstration program.
This program will see the Hadrian X robot construct the external walls of five to 10 single-storey houses for CRH Ventures.
[T]he first next-generation Hadrian X has successfully met their requirements and has completed Site Acceptance Testing at the Fort Myers facility in Florida, United States…
…The demonstration program will be deemed complete when FBR completes construction of its five houses plus up to five houses added to the program by CRH Ventures, with all houses to be certified by an independent structural engineer.
After completing the first five houses, FBR will receive an additional US$400,000 in milestones. In total, it will activate up to US$600,000 in milestone payments on completion of the whole program.
This is roughly 0.3% of the company's market capitalisation at the time of writing.
Finally, if CRH exercises its option to form a joint venture, it could lead to the purchase of 20 Hadrian X robots.
Recent capital raise
While today's gains are encouraging, FBR shares did experience a sharp drop two weeks ago.
According to my colleague James, the ASX robotics stock fell 19% after the company announced a $12.5 million capital raise through an institutional placement.
The funds, raised at 3.8 cents per share, represented a 20.8% discount to the last traded price at the time.
It will use these funds to support the US demonstration program.
Foolish takeaway
This ASX robotics stock continues its US expansion. The positive outcome of testing and the start of the demonstration program could be strong factors.
While recent capital raises caused some volatility, these funds are necessary to fuel the growth of the Hadrian X division. FBR remains a key ASX robotics stock to watch in my view.
The share is up 82% in the past 12 months.
