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Redflow (ASX:RFX) enters trading halt for entitlement offer shortfall

The Market Online Deal Room
ASX:RFX      MCAP $25.63M
29 July 2020 10:15 (AEDT)

Source: Redflow

Redflow (RFX) has entered a trading halt as it tries to place the shortfall of its recent $22.9 million entitlement offer.

The battery manufacturer aimed to raise an immediate $6.25 million via the pro-rata non-renounceable entitlement offer announced on June 11.

Eligible shareholders were offered one new share for every share held, with new shares priced at 2.5 cents per share.

If the offer was fully subscribed, Redflow said it would net $22.9 million in additional equity.

However, after opening on June 1`9, the entitlement offer’s closing date had to be extended in order to drum up more support.

It eventually closed on July 24, but the company has now revealed there was a shortfall.

Redflow has since entered a trading halt, “pending an announcement by the company in relation to its ability to place the shortfall of its entitlement offer and the options available to the company if the shortfall cannot be placed.”

In a statement to the ASX today, the battery manufacturer revealed the trading halt should be lifted by Friday, July 31.

Regardless of how much money is raised by Redflow at the end of this entitlement offer, all of the funds will go towards completing its Gen3 battery development.

It’ll also be used to fund customer trials and further grow their commercialisation strategy.

Shares in Redflow last traded for 2.7 cents per share on July 28.

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