RedT has confirmed it has agreed outline terms for a reverse takeover of fellow vanadium redox flow battery firm Avalon, a move which the firm said would create a “leading player” in the energy storage market.
RedT, whose future has been uncertain owing to financial difficulties, confirmed this morning that outline terms for the proposed merger had been agreed, and the duo have plans for the injection of “significant new funding” to propel the combined business forward.
The merger itself will take the form of a reverse takeover in which a share-for-share acquisition of Avalon has been sealed, using redT shares valued at 1.65p per share.
That deal values Delaware, US-based Avalon at around US$37.5 million.
The combined company will seek re-admission to trade on the AIM market of the London Stock Exchange, and it intends to raise at least £24 million (US$29.97 million) of new funds in order to power the company forward.
In a brief interview this morning, redT CEO Scott McGregor told Energy-Storage.news that the pair are 'complimentary companies', and the partnership is at least in part an attempt to create a company with global reach: redT is active in Europe and Australia, while Avalon has business divisions in territories including the US and China. McGregor said he believed the combined company could be competitive even with some of the bigger players in the market.
Scott McGregor comments reported by Andy Colthorpe.
Read the full version of this story today on Solar Power Portal, our go-to resource for UK solar PV news and analysis. Look out for further comments from redT's Scott McGregor on the proposed merger on E-S.n in the coming days too.
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