My understanding from the JV announcement is the $40M rotating loan facility is only for use by the Joint Venture company to facilitate the early expansion / purchase of Hadrian X's. This is sufficient to fund the first 20x Hadrian X's. Then presumably as a rolling facility to assist with later purchases.
This will not be money FBR can access for its operations.
Re the massive $9.3M quarterly spend, hopefully a significant proportion of the $3.9M spend on Hadrian development was for the actual purchase of components / assembly of the 3 new Hadrian X's for US market. If this is the case, at least FBR will get $2M back on each until of these provided the JV proceeds.
Disappointing there was no update on the status of the build for the 3x Hadrian units or the status of the current Aus unit re readiness for FAT testing and shipment. Information on both of these might have settled the market a little.
Guess the large drops today reflect the very large outgoings without any clear guidance on the next 1 or 2 quarters. Particularly as there are still significant costs pre an expected income stream and no real indication on target timings for commencing the JV if it proceeds. Hence an ongoing large cash bleed.
FBR Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held
(20min delay)