Desktop 3D printing specialist Robo 3D Limited (ASX: RBO) is undertaking a capital raising to support the production of pre-order pipeline valued at $2 million.
The company announced today that it will complete an initial capital raising of $800,000 on the back of achieving a higher than anticipated pre-orders for the December quarter for its new products.
The company reported that there had been strong take-up following the general release of its Robo R2 smart 3D printer in June.
Due to this strong jump in demand Robo 3D will be required to increase it production runs to deliver the pre-orders.
To assist with its funding endeavours Robo engaged Hunter Capital Advisors as corporate advisors and lead managers for the capital raising, and following strong support it has been successful in raising the maximum allowable under the company’s remaining capacity of $800,000 before costs.
The company also revealed it has negotiated the right but not the obligation for an additional $1 million of funding. This additional capital is subject to certain conditions, including shareholder approval at the company’s next meeting of shareholders.
The Company is solely focused on seizing its rapidly expanding pipeline of orders, and utilising these Additionally, the company reported it is progressing final negotiations with USA-based lenders for additional, non-dilutionary trade finance..
Robo’s CEO, Ryan Legudi, said the upcoming December quarter will be “transformational” for the company.
“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,” Mr Legudi said.
“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.”
The capital raising comprises:
A$400,000 Placement at an issue price of A$0.060 per share resulting in the issuance of 6,666,667 new Robo shares, from the company’s current capacity under ASX Listing Rules. An additional 6,666,667 options, with a two-year exercise period and an exercise price of $0.060 per share will also be issued subject to shareholder approval at the Company’s next shareholder meeting.
Robo has entered into a Convertible Note Agreement with L1 Capital Global Opportunities Master Fund, that will allow the company to receive $400,000 from the issuance of a new convertible note issued under the Company’s existing placement capacity.