Australian battery company Redflow Limited today unveiled an investment package that will raise $14.5 million to target sustainable delivery of its zinc-bromine flow batteries to high demand areas such as telecommunications.
Redflow’s capital-raising follows its May announcement of decisions from a strategic review including:
- Prioritising sales to supply proven demand areas including mature telecommunications / industrial / commercial, remote/off-grid power and ‘weak-grid’ market segments
- Transitioning battery production to South East Asia at a more appropriate manufacturing site to leverage proximity to proven markets and reduce supply chain costs
- Implementing a range of key battery cost-down projects to reduce delivered product manufacturing cost by at least 30 per cent over the next 18 months, and
- Targeting sustainable cashflow-positive operations by the end of 2018.
Redflow has provided an Investor Presentation containing details of the outcome of its Strategic Review and consequent activities undertaken or planned by the company, plus its new manufacturing partner, Malaysian-based MPTS, a long-term supplier of a core component of Redflow’s battery stack.
Announced to the Australian Securities Exchange (ASX) this morning, Redflow’s equity raising comprises a share placement $10.5 million in two tranches to sophisticated and professional investors and the issue of $4 million worth of shares to Hackett CP Nominees Pty Ltd - an entity associated with Redflow Executive Chairman Simon Hackett - in exchange for already issued convertible notes.
Redflow Executive Chairman and CEO Simon Hackett said the strategic review had determined the best forward operating stance for the company. “We have identified that the telecommunications sector has a strong, proven and ongoing demand for energy storage that fits the ‘sweet spot’ of Redflow’s unique value proposition," he said.
"In May, Redflow recorded its largest sale to date, to an energy systems integrator working in the telecommunications and network power sector.
“At the same time, Redflow will continue supplying into its ZCell residential battery sales channel which is delivering our compelling energy storage solution for residential and SOHO customers, especially those located in off-grid areas or warm climates.”
Redflow Chief Operating Officer Richard Aird said the process of disengaging from the company’s former manufacturing location was substantially complete. “The activities Redflow is undertaking to transition manufacturing and to implement key product cost-down projects are critical to the future success of the company,” he said.
“Product deliveries will continue from built-up stock-on-hand and stock in transit ahead of the planned resumption of manufacturing in South-East Asia toward the end of this calendar year. Redflow staff are keen and committed to achieving the steps needed to maximise our prospects of future success.”
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About Redflow www.redflow.com
Redflow’s unique zinc-bromine flow batteries are designed for stationary energy storage applications ranging from its ZCell residential battery to its scalable ZBM2 batteries for industrial, commercial, telecommunications and grid-scale deployment. Redflow Limited, a publicly-listed company (ASX: RFX), produces high energy density batteries that are sold, installed and maintained by an international network of system integrators. Redflow batteries offer unique advantages including 100 per cent depth of discharge, tolerance of ambient temperatures as hot as 50 degrees Celsius and sustained energy storage of 10 kilowatt hours (kWh) throughout its operating life.
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