Following a trading halt on September 7, Californian desktop 3D printer manufacturer Robo 3D (ASX:RBO) has announced that it will complete a capitol raising round to fulfil demand for its R2 and C2 printer models.
The company is asking for an $800,000 investment, with the option of raising an additional $1 million. The money will be used to support more production runs and meet pre-orders for the upcoming December quarter that, according to the official announcement, have been “significantly higher than anticipated.”
Robo 3D customers have racked up a total of $2.0 million in 3D printer pre-orders to be delivered December 2017. A rising demand has been particularly noted after the general release of the Robo R2 smart 3D printer in June.
In the same month, Robo 3D also announced it was scaling up its production capacity after the successful raising of AUD$1.8 million. Most recently, Robo 3D entered into a development agreement with Dutch filament producer colorFabb.
To meet the sharp uptake for December, the company is seizing the opportunity for potential growth and has engaged Hunter Capital Advisors to lead the financing.
Discretion is of course advised. As noted in the announcement, “The Company notes that pre-orders are subject to cancellation by customers, and requires timely delivery of products, therefore revenue generated from the pre-orders may not be fully realised, but notes that based on historical experience it does not expect there to be material change.”
Key terms of the placement and convertible notes can be found in investor relations on the company’s website.
A “validation” of Robo 3D products
Robo CEO Ryan Legudi comments, “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.”
“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.”
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Featured image: Robo C2 and R2 desktop 3D printers. Image via Robo 3D