Redflow Limited has today announced an Entitlement Offer to raise as much as $22.9 million before offer costs with an immediate target of around $6.25 million.
When the Board last raised capital from shareholders in April 2019 (by way of a 1:2 pro-rata non-renounceable entitlement offer) it noted that Redflow was well-positioned to gain sales traction and customer acceptance of its innovative zinc-bromine flow batteries.
Since that time, Redflow has:
- grown sales over the nine months to 31 March 2020 by 166 per cent to $1.7m versus the prior corresponding period;
- secured (after extensive trials) an initial order from Vodacom, which is part of one of the world’s largest telco groups, for nearly 30 telecommunication tower sites in South Africa (68 batteries);
- developed a close relationship with Mobax, one of Southern Africa’s largest field services companies for the telecommunications industry;
- been selected by New Zealand Rural Connectivity Group to provide energy storage for a number of off-grid sites with an initial order in December 2019 and repeat order in April 2020 (22 batteries in total) and have been advised that Redflow batteries are a reference technology in a closed tender to select an installation partner for all RCG’s remaining off-grid telecommunication towers;
- achieved ISO9001 accreditation for our Thailand factory and demonstrated the benefits of a wholly-owned flexible manufacturing capability (capable of quickly scaling to 250 batteries a month);
- proven the capacity, performance, structure and behaviour of our Thailand manufactured batteries after more than 600 cycles through an Australian government-sponsored independent testing program;
- captured a growing number of orders through a refreshed partner ecosystem in Australia – notably in the agricultural and commercial sectors;
- expanded into China via a Collaboration Agreement with ZbestPower Co – including the deployment of a 10 battery demonstration site in Qinghai Province; and
- secured material improvements in future input costs through key supplier negotiations.