Vanadium redox flow storage companies RedT and Avalon have agreed to complete their merger, subject to shareholder consent. The combined business will be called Invinity Energy Systems.
RedT was readmitted to the stock exchange this morning, where shares climbed 25 per cent. The company is seeking to raise £7.9m from shareholders to fund growth, which it said it has secured, subject to shareholder approval in April. In total, the firm has total debt and equity funding of £14.9m.
Larry Zulch, proposed Invinity CEO, stated:
“I am delighted that today we have announced the merger of redT and Avalon into what will be called Invinity Energy Systems upon approval at redT’s general meeting on 2 April 2020. Despite the most turbulent market conditions in decades, we were able to secure total debt and equity funding secured of £14.9 million, including the conversion of existing Bushveld debt of $5 million.
“The support of existing investors and shareholders, especially in these market conditions, is a massive vote of confidence. We look forward to delivering on our strategy of creating the world’s leading vanadium flow battery company.”
RedT chairman Neil O’Brien said the merger “creates a world leader in the fast growing, global energy storage market with our proven disruptive alternative to lithium-ion technology.
“Despite the challenging equity market conditions following the coronavirus outbreak, it is testament to the strength of our investment story that we have received major support both from current institutional shareholders and new investors.”
Correction: This article originally stated the firm is seeking a further £7.9m. A RedT spokesperson said the funds have already been raised via conditional placing, subject to approval.