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RedFlow shares fly 83%

RedFlow shares fly 83%

RedFlow’s (ASX: RFX) share price spike of 83% to an intra-day high of A$0.13 last Friday, up from a close of A$0.071 on Tuesday 2 October 2012, has prompted the ASX to issue a price and volume query.

During the period, 2.1 million shares were traded.

RedFlow responded to the ASX saying it is not aware of any material information that has not been disclosed to the market, which may explain the sudden investor interest.

However, the company did note it had been in discussions with a number of international companies regarding demonstration trials to help drive future growth in sales of its ZBM batteries, which had previously been disclosed in an earlier announcement.

One negotiation was with a large Europe-based global conglomerate, a non-binding terms sheet had been reached and the next step was to finalise a definitive agreement.

The negotiations are advanced and RedFlow is confident of finalising an agreement soon.

The company has also previously disclosed a second, less advanced, negotiation with a large Asia-based vertically integrated conglomerate, which has already undertaken site visits.

Technical due diligence and commercial discussions are now underway.

Negotiations with a third party, a major U.S.-based corporation, have also previously been announced and are at an advanced stage.

RedFlow said it was too early to release an announcement in relation to the negotiations, but that an announcement would be made once the negotiations were finalised.

Cash position

At the end of the June 2012 quarter RedFlow had A$5.6 million cash in the bank.

The company reported revenue of A$2.64 million for the 2012 financial year, a 48% increase on the previous year.

RedFlow does not expect to have to return to the capital markets in the 2013 financial year and plans to seek to secure strategic investors to continue to strengthen its balance sheet and position in the global market place.

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Redflow Ltd Timeline

February 23 2016
February 16 2016

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