3D printer Robo 3D jumps 68pc after buying US education outfit
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3D printer Robo 3D jumped 68 per cent today after buying the world’s biggest library of 3D printable kits designed for schools.
Robo 3D (ASX:RBO) will pay the owners of Atlanta-based MyStemKits $US2 million ($2.6 million) including $US1.2 million in cash plus shares issued under a 12-month escrow.
Robo will also pay a 5 per cent royalty on revenue for five years and take on three staff.
The shares were up 68 per cent this morning to an intraday high of 3.7c — though still well down on their one-year high of 7.2c. The stock cooled to 2.8c by 1.15pm AEST.
California-based Robo 3D — which primarily makes consumer-targeted 3D printers that range from $US500 to $US1500 — raised $3.5 million to complete the deal.
Robo 3D banked $3.8 million in customer receipts for the nine months to March — but burned through $5.8 million.
MyStemKits calls itself an “EdTech” business that designs 3D printable kits for schools, based on the US education curriculum.
“Our kits turn common classroom supplies into interactive manipulatives that student and teachers both enjoy using in the classroom,” MyStemKits says.
Robo 3D reckons the education market is a great distribution channels for its printers — espcially in the so-called STEM (science, technology, engineering and maths) curriculum.
“Robo has focused significant resources on expanding its presence into education to deliver a “turnkey” education solution. The Acquisition of MSK delivers a compelling addition to its existing education portfolio.”
That strategy didn’t work too well for another ASX-listed 3D printer stock, 333D, however.
In January 333D (ASX:T3D) pulled out of the education market in January, saying its “school 3D printer proved too early for the marketplace”.
Here’s a video showing how the MyStemKits products work: