Shares in robotic technology company FBR Limited (ASX: FBR) took a big hit today after US-based construction materials suppler CRH Ventures opted out of a possible joint venture following a successful year-long demonstration program.

The shares almost halved to a low of 1.9c this morning, before recovering some lost ground by the afternoon to 2.3c each at 2.21pm (AEDT) – down 38 per cent.

The Perth-based FBR, which manufactures the Hadrian X automated block-laying robot, has announced that its option for a joint venture with CRH Ventures lapsed yesterday afternoon.

With this went the prospect of the US giant’s binding order of 20 Hadrian units which would have been deployed on construction sites across America.

The Hadrian X robot, which FBR sells for US$2 million ($3.1 million) each, has the capacity to lay 300 blocks per minute and the US demonstration announced in January last year successfully completed 10 houses in Florida.

The company worked with several builders in the US, for which FBR received non-refundable payments totalling US$2 million from CRH Ventures.

FBR completed the demonstration program in December and at the time announced that it had reached agreement with CRH Ventures that the capabilities of Hadrian X had been “adequately demonstrated”. The company was awaiting confirmation by 16 February that the planned joint venture would proceed.

However, after failing to receive formal notice by yesterday’s deadline that CRH Ventures was exercising its option, FBR says the exclusivity period has now been lifted, adding that it is planning to pursue other opportunities in North America.

CRH Ventures is a subsidiary of CRH plc, one of the largest concrete block suppliers in the United States.

“FBR has been progressing negotiations with third parties in connection with Hadrian X financing options as an alternative arrangement to the financing that would have been provided for a period of time under a joint venture,” says the company.

“Following expiration of the option, FBR is now positioned to advance those discussions independently.”

FBR says it has also engaged with governments in Australia and several state governments in the US to canvas support for its robotic construction technology, adding that these discussions can now progress to the next stage.

“We have successfully introduced our technology to one of the largest and most important markets in the world, building 10 code-compliant house structures in suburban developments in Florida,” says FBR’s CEO Mike Pivac.

“We achieved significant milestones in our demonstration program including the completion of a house structure in a single workday with a three-person crew.

“Our activities to date have opened up excellent future opportunities for FBR in the United States, and very importantly have confirmed the certification and viability of our wall system, creating go to market routes with major builders and proving out the commercial model.”

Despite failing to secure a deal with CRH Ventures, Pivac says that FBR is now “unrestricted in its dealings and operations” in the US and has engaged with builders, counties and industry players in Florida and other states, including California, to garner interest in the company’s technology.

“FBR will provide further updates on its United States operations in the coming weeks, including its transition to the Liebherr facility in Miami as an operating base,” says Pivac.

FBR undertook an $8 million capital raising in November last year for working capital to complete its home demonstration program in Florida.

At the time, the company announced that it had successfully completed five of the 10 homes planned for Fort Myers, Florida, which were confirmed by an independent engineer as compliant with the design and building code.

By December, the company said it had wrapped up the demonstration program by completing the external walls of nine homes, with one of the homes being built in a single day.

The company also announced that it was to complete at least one home for major US builder PulteGroup outside of the scope of the demonstration program, as well as a home for Neal Communities, another builder in southwest Florida.

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