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Brisbane based battery manufacturer Redflow (ASX: RFX) is set to raise $18.1 million in equity capital to rapidly scale up the manufacture and sales of its battery systems.
The company will raise the funds through a combination of a $7.5 million placement to new investors and a $10.6 million fully underwritten rights issue offered to all current shareholders.
This latest round of capital raising follows significant action from the company, including building a new manufacturing plant in Thailand.
The production of Redflow products has rapidly scale up as a result and increased in quality too according to chairman Brett Johnson (pictured).
"We now have the ability to manufacture and supply quality batteries in predictable quantities," says Johnson.
The company plans to increase its manufacturing capacity in Thailand to be able to build as many as 90 complete batteries a month by June 2018, and 250 batteries by December 2018.
The company also announced the new appointment of Tim Harris as chief executive officer.
"The ability to manufacture quality batteries and Tim's appointment permits Redflow to invest in the development of a well-articulated growth strategy focusing on the sales, marketing and support infrastructure the company requires to successfully penetrate the international energy storage market," says Johnson.
The company says Redflow's largest shareholder and non-executive director, Simon Hackett, will invest more than $1.8 million to take up his full rights in the entitlement issue.
"To date, shareholders have invested in development of the Redflow battery and in the creation of a manufacturing facility. We believe we are positioned now to transition from a research & development company into a fully operational manufacturing, sales, marketing, and product support organisation."
Johnson also says the company has been approached by several Chinese entities, and is actively investigating strategic opportunities in the country.
"China is forecast to be one of the largest single markets for energy storage, accounting for as much as 70 per cent of the Asia-Pacific market," says Johnson.
"We will continue to engage with selected parties to assess potential partnership outcomes."
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