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RooLife Group (ASX: RLG) is expanding its renewable energy ambitions after signing a binding term sheet to acquire a battery energy storage and microgrid business while securing commitments for a $1.06 million capital raise.
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The acquisition will be completed through RLG’s wholly owned subsidiary, Aurora Advanced Technologies, and is designed to expand the company’s renewable energy division from supplying branded products into project origination and delivery.
The business being acquired focuses on battery energy storage systems (BESS), microgrid and hybrid power solutions for mining, commercial, industrial, utility and government customers internationally.
RLG said the business has established relationships across the battery value chain, including battery technology companies, battery system assemblers and project development partners across Australia, East Africa and Europe.
It also brings a business development pipeline that includes proposed battery storage projects, mine site power purchase agreement opportunities and broader renewable energy developments.
The acquisition will be funded entirely through equity, with an upfront issue of 80 million shares, subject to shareholder approval, plus up to 400 million performance rights linked to achieving revenue contracts totalling $12.5 million and a minimum gross profit contribution of $1.56 million.
The acquisition builds on Aurora’s existing energy platform, which already holds exclusive 10-year marketing and distribution agreements with Chinese manufacturers Genmia, Kemin and Sunda for photovoltaic power generation control systems, solar inverters and battery storage products marketed under RLG’s own branding.
RLG said combining these existing product rights with the acquired project’s development capabilities would create an integrated renewable energy business spanning products, projects and long-term energy contracts.
The company also announced a research partnership with Murdoch University to develop and validate battery management systems and inverter control software for battery energy storage and renewable energy systems under Australian operating conditions.
The collaboration will focus on scalable energy solutions for remote, off-grid and grid-connected communities and is intended to complement the project pipeline secured through the acquisition.
The company’s managing director, Bryan Carr, said the acquisition would transform Aurora into a fully integrated renewable energy business spanning branded solar, inverter and battery products through to the development and delivery of energy storage and hybrid power projects.
RLG has been trading up +100%, currently at $0.40/share.
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