- Redflow has completed a one-for-two entitlement offer and raised approximately $8.4 million
- 356,311,731 shares were offered at an issue price of 4.2 cents per new share, to raise roughly $15 million to fund Reflow’s business plan and sales strategies
- 44 per cent of shares were not taken up in the offer
- New shares under the entitlement offer are expected to be issued on Friday 31 May, and normal trading of new shares will begin on Monday 3 June
- Funds raised will be used to accelerate its business plan in its expanding target market inclusive of China, Australasia and South Africa
Redflow Limited has revealed its one-for-two entitlement offer to raise up to $15 million, which was announced in April this year, closed on Friday 24 May and raised approximately $8.4 million.
Shareholders applied for 199,892,704 shares in the pro-rata, non-renounceable entitlement offer at an issue price of 4.2 cents per new share, raising a total of $8,395,493. This represented 56 per cent of total shares offered, with 156,419,027 shares not taken up.
Revenue raised from the entitlement offer will fund Reflow’s business plan and sales strategies. In the announcement on 12 April, Reflow said the capital will include funding to sales investment, business development, and general working capital activities, as well as support to cost down initiatives and research activities.
The new shares under the entitlement offer are expected to be issued on Friday 31 May, and normal trading of new shares will begin on Monday 3 June.
Redflow Managing Director and CEO Tim Harris said despite the percentage of shares not taken up, the capital raising was successful and reflects strong shareholder support for the company.
“As can be seen from this month’s announcements across China, Australasia and South Africa, we are steadily gaining market traction which is supported by our scalable high-quality manufacturing facility in Thailand,” Tim said.
“The funds raised will support the Company to execute and accelerate its business plan in our target markets. On behalf of Redflow’s Directors, I would like to thank all our shareholders who participated in the entitlement offer for their continued support as we realise the exciting potential of our world-leading zinc bromine flow technology,” he said,
Redflow is an Australian company specialising in the production of small zinc-bromine flow batteries designed to tolerate harsh conditions. Redflow batteries are scaleable from a single-battery installation to grid-scale deployments in residential, commercial and industrial sectors.
Redflow has recently entered agreements with ZbestPower Co in China and Mobax South Africa to gain international market traction and expand into China and South Africa on top of its already-established Australasian market.