Fitell Corporation announced a $50 million convertible note issuance with a U.S. institutional investor to finance the launch of its 2F Robotics joint venture, a partnership with GZ Fukonn Vanguard Intelligent Technology that will focus on AI‑driven robotic solutions for consumer and industrial markets.
The financing comes at a time when Fitell’s core business has been under pressure: fiscal 2023 revenue was $4.8 million with a $1.6 million net loss, and fiscal 2024 revenue fell to $4.47 million while losses swelled to $9.31 million. The new capital is intended to support research and development, manufacturing, and commercialization of 2F Robotics products, providing a potential new recurring revenue stream that could offset the decline in its fitness‑equipment sales.
GZ Fukonn Vanguard Intelligent Technology is an Asia‑based robotics firm with a track record of commercial deployments in manufacturing and service automation. Fitell retains majority ownership and full intellectual‑property rights in the joint venture, while the partner brings engineering expertise and existing customer relationships that will accelerate product development and market entry.
The terms of the convertible note—interest rate, maturity, and conversion price—were not disclosed in the announcement. The note will be held in stablecoins, a strategy that Fitell says offers capital stability and flexibility for future allocation decisions.
CEO Sam Lu emphasized that the financing “enhances our capital flexibility and broadens our balance sheet through a diversified corporate treasury.” He added that holding proceeds in stablecoins and a digital‑asset framework allows the company to adjust allocations in response to market conditions, positioning Fitell to pursue innovation in robotics while managing its current financial challenges.
Investors have remained cautious, reflecting Fitell’s ongoing financial distress and the lack of a clear path to profitability. The announcement did not materially alter market sentiment, as the company’s revenue decline and mounting losses continue to dominate investor concerns.
There is no analyst coverage or consensus guidance for the joint venture, and the company has not issued forward‑looking financial guidance beyond the note issuance.
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