Vanadium flow storage firm “confident” in securing funds and touts “strong” strategic investor in the wings, but warns clock is ticking.
Flow storage company RedT has reiterated a “strong, new strategic investor” has provided “substantial preliminary support” and intends to make a “cornerstone investment” in its proposed merger with US-based Avalon Battery Corp.
However, the company also warns that it would have “no option but to cease trading” if it cannot secure funds by December 2019.
RedT noted a “strong, new” investor last July, when it announced the merger plan.
Today’s first half results contain little new information, but show operating losses have been pared to £3.8m from £5.5m. The company said it had £3.1m in free cash at 30 June.
RedT said it would announce details of interim funding in the near future and said the board remains “optimistic that the necessary funding will be secured in the appropriate time scale”.
Executive chairman, Neil O’Brien thanked shareholders for their patience and said he retains “confidence in the RedT team’s ability to deliver shareholder value”.
“It is my strong belief that the proposed merger with Avalon and accompanying fundraise, if successful, will create a strong and financially robust company that will become a leader in the vanadium redox flow sector, and can compete effectively in one of the world’s fastest growing markets,” added O’Brien.
RedT is expected to provide the 2MW/5MWh flow storage component of a proposed ‘superhub’ at Oxford next year.
See the interim results here.
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