Valid applications for New Shares totalled approximately $7.07 million resulting in oversubscriptions of approximately $0.7 million.
The raising was priced at $0.20 and also comprised a A$9.7 million placement.
Shares last traded a $0.23, a premium to the offer.
RedFlow produces a unique modular zinc-bromide flow battery which provides cost effective, safe energy utilisation and storage.
Making sales is the company's prime focus for 2015.
Use of funds
- Funding a higher level of inventory;
- Placing demonstration systems of both individual batteries and containerised solutions in selected regions. These demonstration units will be available for immediate sale; and
- Investment in new machinery to facilitate higher volumes and reduce costs through automation of some key processes in manufacturing.
Notable shareholder support
Wotif.com founder Graeme Wood recently became a substantial shareholder, after he invested $3 million in the placement.
Non-executive director of RedFlow and a director of NBN Co, Simon Hackett (and interests associated with him), invested $3.4 million in the placement.
RedFlow sells first large scale energy storage system
Earlier in the year the company sold its first commercial large scale energy storage system to Base64 Pty Ltd.
The system is a 20ft shipping container modified to accommodate 60 ZBM3 battery modules providing up to 300kW and 660kWh of energy with a voltage output between 400V and 800V DC.
Delivery and installation is expected in June 2015.
This system is well suited to commercial buildings where solar or other renewable energy sources can be integrated with larger scale energy storage.
The design of this commercial system, once completed, will be available to the company’s system integration partners at no charge.
Base64 Pty Ltd is a company associated with Simon Hackett.
Key benefits of this system are a full DC architecture, easy installation, ability to be interfaced with a range of commercially available inverters and a DC voltage of between 440V and 800V and it is relocatable.
Target applications for this system are larger mini-grid applications, grid support, distributed generation and renewables integration.
- Converting trials currently underway in Australasia, Africa, Europe, USA, Central and South America, and the Philippines to firm sales orders;
- Consolidate and focus on current geographic markets and opportunities with no additional regions to be added unless in conjunction with existing system integration partner using existing product;
- Sales team in place in U.S. and Asia Pacific with Europe to commence from 1 April;
- Continuing focus on cost reduction in manufacturing with the sharing of cost savings an incentive for manufacturing partner Flextronics;
- Ongoing product development focused on improved performance, lower cost and ease of manufacturability.
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