- Redflow (RFX) has entered a trading halt as it tries to place the shortfall of its recent entitlement offer
- The battery manufacturer aimed to raise between $6.25 million and $22.9 million through the entitlement offer
- The offer was released last month and eligible shareholders were offered one new share for every share held, with new shares priced at 2.5 cents each
- The capital raise had its closing date extended in a bid to raise more support, however, the company today said there was still a shortfall
- Regardless of how much money is eventually raised, Redflow will use the equity to complete its Gen3 battery development and customer trials
- Shares in Redflow last traded for 2.7 cents per share
Redflow (RFX) has entered a trading halt as it tries to place the shortfall of its recent $22.9 million entitlement offer.
The battery manufacturer aimed to raise an immediate $6.25 million via the pro-rata non-renounceable entitlement offer announced on June 11.
Eligible shareholders were offered one new share for every share held, with new shares priced at 2.5 cents per share.
If the offer was fully subscribed, Redflow said it would net $22.9 million in additional equity.
However, after opening on June 1`9, the entitlement offer's closing date had to be extended in order to drum up more support.
It eventually closed on July 24, but the company has now revealed there was a shortfall.
Redflow has since entered a trading halt, "pending an announcement by the company in relation to its ability to place the shortfall of its entitlement offer and the options available to the company if the shortfall cannot be placed."
In a statement to the ASX today, the battery manufacturer revealed the trading halt should be lifted by Friday, July 31.
Regardless of how much money is raised by Redflow at the end of this entitlement offer, all of the funds will go towards completing its Gen3 battery development.
It'll also be used to fund customer trials and further grow their commercialisation strategy.
Shares in Redflow last traded for 2.7 cents per share on July 28.