- Redflow (RFX) is set to raise $5 million through a share placement to private investors
- The raised funds will go towards accelerating the company’s growth initiatives, including supporting sales and business development
- The company will issue 116 million new shares at 4.3 cents each — a 12.2 per cent discount to its last closing price on August 10
- Redflow now intends to raise an additional $5 million through a share purchase plan, with results to be announced on September 9
- Shares in Redflow are down 6.12 per cent and trading at 4.5 cents as of 3:50 pm AEST
Redflow (RFX) has tapped private investors for $5 million through a share placement to fund growth initiatives and ramp up the production of its Gen3 battery.
The growth initiatives to be supported by the capital raise include supporting sales and business development and further research and development.
Under the placement, Redflow will issue roughly 116 million new shares at 4.3 cents a share, representing a 12.2 per cent discount to the company’s last closing price on August 10.
Redflow CEO and Managing Director Tim Harris said the placement allowed the company to bring forward its growth objectives.
“After successfully completing our Gen3 development and progressing very large opportunities in the US, we are very excited by the opportunities we see for Redflow’s energy storage battery technology solution to rapidly increase adoption,” Mr Harris said.
“We see huge potential for Redflow’s technology in the US and other markets like Australia.”
The company confirmed that its largest investor, Simon Hackett, was participating in the placement.
Along with the private placement, the company intends to offer mum and dad investors the opportunity to participate in a share purchase plan (SPP) to raise up to $5 million.
Shareholders can subscribe for up to $30,000 of shares under the same terms as the share placement.
The SPP is set to open on August 18 and will tentatively close on September 8, with results announced on September 9 and allotment on September 14.
Shares in Redflow were down 6.12 per cent and trading at 4.5 cents as of 3:50 pm AEST.