Australian battery company Redflow Limited unveiled an investment package that will raise $14.5 million to target sustainable delivery of its zinc-bromine flow batteries to high demand areas such as telecommunications. Redflow’s capital-raising follows its May announcement of decisions from a strategic review including:
Redflow has provided an Investor Presentation containing details of the outcome of its Strategic Review and consequent activities undertaken or planned by the company, plus its new manufacturing partner, Malaysian-based MPTS, a long-term supplier of a core component of Redflow’s battery stack.
Redflow’s equity raising comprises a share placement $10.5 million in two tranches to sophisticated and professional investors and the issue of $4 million worth of shares to Hackett CP Nominees Pty Ltd - an entity associated with Redflow Executive Chairman Simon Hackett - in exchange for already issued convertible notes.
Redflow Executive Chairman and CEO Simon Hackett said the strategic review had determined the best forward operating stance for the company. “We have identified that the telecommunications sector has a strong, proven and ongoing demand for energy storage that fits the ‘sweet spot’ of Redflow’s unique value proposition. In May Redflow recorded its largest sale to date, to an energy systems integrator working in the telecommunications and network power sector.
“At the same time, Redflow will continue supplying into its ZCell residential battery sales channel which is delivering our compelling energy storage solution for residential and SOHO customers, especially those located in off-grid areas or warm climates.”
Redflow Chief Operating Officer Richard Aird said the process of disengaging from the company’s former manufacturing location was substantially complete. “The activities Redflow is undertaking to transition manufacturing and to implement key product cost-down projects are critical to the future success of the company,” he said.
“Product deliveries will continue from built-up stock-on-hand and stock in transit ahead of the planned resumption of manufacturing in South-East Asia toward the end of this calendar year. Redflow staff are keen and committed to achieving the steps needed to maximise our prospects of future success.”
About Redflow | http://www.redflow.com