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  • Redflow (RFX) will be undertaking a $22.71 million capital raising to support growth
  • This capital raise will consist of a $5 million investment which will be taken up by US-based New Technology Capital Group
  • The remaining $17.71 million will be raised through a pro-rata non-renounceable entitlement offer
  • Redflow will use the funds to capitalise on its current contracts, pursue business development opportunities and build a presence in the US
  • Redflow is down 1.56 per cent on the market with shares trading at 6.3 cents at 10:45 am AEST

Redflow (RFX) will be undertaking a $22.71 million capital raising to support growth.

This capital raise will consist of a $5 million investment and a pro-rata non-renounceable entitlement offer to raise up to $17.71 million.

The $5 million investment will be taken up by US-based New Technology Capital Group and the potential exists for an additional $5 million.

New Technology Capital will take up $5.3 million worth of subscription shares equal to 12 cents, representing an 87.5 per cent premium to Redflow’s shares on June 21 of 6.4 cents.

Shares are expected to be issued on or around June 29.

Under the entitlement offer, eligible shareholders will be able to apply for one new share for every four at a price of 5.9 cents.

This price represents an eight per cent discount to the 10-day volume-weighted average price of 6.4 cents.

For every one new share subscribed for, shareholders will receive one attaching option exercisable at 10 cents with expiry on July 30, 2022.

Redflow will use the funds to capitalise on its current contracts, pursue business development opportunities and build a presence in the US.

Since last undertaking a capital raising in July 2020, Redflow signed its largest global battery sale to Anaergia for 192 batteries.

The sale is valued at US$1.2 million (A$1.5 million) and includes the launch of Redflow’s core multi battery module Energy Pod Z.

Redflow also partnered with Optus to deploy its batteries in at least 56 black spot sites under the Australian Government’s Mobile Network Hardening Program.

Additionally, its Thailand manufacturing facility is now ramping up to meet battery orders with a backlog of 350 batteries as of June 21.

Redflow was down 1.56 per cent on the market with shares trading at 6.3 cents at 10:45 am AEST.

RFX by the numbers
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