March 21 (Renewables Now) - UK energy storage firm redT energy Plc (LON:RED) last week started a strategic review of its options and announced an open offer to existing shareholders with which it aims to raise up to GBP 2.26 million (USD 3m/EUR 2.6m).
VSA Capital has been appointed financial adviser to assist with the strategic review, whose goal is to explore the options available to fund the business going forward.
To secure funding for redT during the review, VSA has sold 47 million new shares to existing investors, raising GBP 940,000 before expenses. The open offer comes in addition to that and will include up to 113.03 million new shares. Shareholders of record as of March 15 can buy one new share for every seven existing shares they own.
The circular for the open offer was published on March 19.
The price per share in the placing and the open offer is the same -- GBP 0.02 apiece. This is a discount of 44.8% to redT’s closing middle market price of GBP 0.0363 pence on 13 March 2019, and a discount of 61.9% to the average 90-day price of the company’s stock.
Admission and dealings in the new shares is expected to commence on April 10.
redT energy uses a patented vanadium redox flow technology to store energy in liquid.
(GBP 1 = USD 1.32/EUR 1.16)