Aussie energy storage co Redflow to raise USD 14m in equity capital
Source: Redflow Ltd (redflow.com)
Australian energy storage firm Redflow Ltd (ASX:RFX) plans to raise AUD 18.1 million (USD 13.7m/EUR 11.3m) in equity capital as it seeks to scale up battery production and increase sales both at home and overseas.
The Brisbane-based company will use the funds to pursue a growth strategy that includes identifying potential sales, marketing and manufacturing joint venture partners, and to further reduce the manufacturing cost of its products.
Redflow makes zinc-bromine flow batteries. It offers batteries, called ZBM2, for commercial, industrial, telecommunications and grid-scale energy storage, as well as ZCell batteries for residential applications. Late last year, it opened a factory in Thailand.
“We now have the ability to manufacture and supply quality batteries in predictable quantities. The current plan is to increase our manufacturing capacity in Thailand so we can manufacture as many as 90 complete batteries a month by June 2018 and, subject to demand, scale up production to as many as 250 batteries by December 2018,” said chairman Brett Johnson.
The company will focus on key markets across Africa, Asia Pacific and Australasia. According to Johnson, it is also actively considering strategic opportunities in China.
Redflow is now raising AUD 7.5 million, before transaction costs, through a placement to new investors and an additional AUD 10.6 million through a fully underwritten non-renounceable entitlement offer to all current shareholders. The company’s largest shareholder and non-executive director, Simon Hackett, will invest more than AUD 1.8 million, while new CEO Tim Harris will support the underwriting of the entitlement offer.