RFX - Redflow Limited

[mullokintyre]

great little brawl going on in RFX.
Some folks trying to push the price below the SPP, others trying to keep it above., been some good swings these past few days.
As is usual, got a call from from someone asking me if I knew about the SPP, and was I going to take it up.
Seemed a little disappointed when I said no, I had bought cheaper on market.
Mick

 

[sptrawler]

great little brawl going on in RFX.
Some folks trying to push the price below the SPP, others trying to keep it above., been some good swings these past few days.
As is usual, got a call from from someone asking me if I knew about the SPP, and was I going to take it up.
Seemed a little disappointed when I said no, I had bought cheaper on market.
Mick

Same here, I wonder if they are massively undersubscribed, it will be interesting to see how they raise the funds if that is the case.
One of the problems for Aussie companies building their manufacturing base overseas, it maybe difficult to raise Govt or bank backing here.

 

[mullokintyre]

Got an email today to “remind” me.
They have extended the closing date which to me says its undersubscribed.
Mick

 

[mullokintyre]

RFX has had a good sale in OZ, a 4MWHR battery project in Ipswich.
Just need a whole lot more.

Thats still only 40 of the gen3 flow batteries, but it will do for a start.
Edited - that should read 4000 of the gen3 batteries.
Mick

 

[Dona Ferentes]

great little brawl going on in RFX.

Raised a total of $4,885,577. The entitlement offer prioritised participation by existing shareholders. The Company received acceptances, oversubscriptions from existing shareholders and a commitment from an Australian institutional fund, for a total of 23,264,662 new fully paid ordinary shares, being approximately 26% of the total entitlements available for subscription.

This capital raising bolsters Redflow’s capital position ($5.5 million cash and no debt at 30 June 2023) at a key inflection point in the commercialisation of Redflow’s world-leading long duration energy storage technology. Additional expected cash inflows of circa $2.5 million R&D rebate and a circa A$7.7 million initial milestone payment from the California Energy Commission are expected in the fourth quarter of this calendar year.

Redflow will prioritise use of the capital raised, cash on hand and expected cash inflows on announced customer projects and other income generating activities

 

[mullokintyre]

Raised a total of $4,885,577. The entitlement offer prioritised participation by existing shareholders. The Company received acceptances, oversubscriptions from existing shareholders and a commitment from an Australian institutional fund, for a total of 23,264,662 new fully paid ordinary shares, being approximately 26% of the total entitlements available for subscription.

This capital raising bolsters Redflow’s capital position ($5.5 million cash and no debt at 30 June 2023) at a key inflection point in the commercialisation of Redflow’s world-leading long duration energy storage technology. Additional expected cash inflows of circa $2.5 million R&D rebate and a circa A$7.7 million initial milestone payment from the California Energy Commission are expected in the fourth quarter of this calendar year.

Redflow will prioritise use of the capital raised, cash on hand and expected cash inflows on announced customer projects and other income generating activities

Must be a bit disappointing for the management considering the original prospectus was looking for circa $20mill.
Mick

 

[Dona Ferentes]

painfully slow ....
report out ...
.....19.5c

.
Growth strategy focused on multi-MWh projects is delivering results
Production outlook full for 2023 and into 2024
24+ MWh projects generating $23m+ revenue for delivery
MWh+ contracts reinforce Redflow's industry leading position – US CEC and AU EQ.
Major support from Qld and California governments
At the forefront of AU/US clean energy collaboration
Thailand facility back into production and ready to scale
Strengthened balance sheet to execute and grow
6+ GWh pipeline of qualified sales opportunities
70 MWh of opportunities at advanced stages

 

[mullokintyre]

Hopefully RFX, being an OZ comoany, can get a slice of this.
from PV magazine

Mick

 

[mullokintyre]

RFX has announced a USD2.8mill contract with the US DOD to install a non lithium microgrid.
That has to be good for the share price today.
Shifting focus away from lithium to other media would be a positive for the flow battery technology.
RFX techs coming out to our place on Wednesday to do a field check on our battery storage system at home.
I hope it passes.
Mick

 

[sptrawler]

RFX has announced a USD2.8mill contract with the US DOD to install a non lithium microgrid.
That has to be good for the share price today.
Shifting focus away from lithium to other media would be a positive for the flow battery technology.
RFX techs coming out to our place on Wednesday to do a field check on our battery storage system at home.
I hope it passes.
Mick

It will be interesting to hear how they are going and if there are any issues, the son is still interested in using them.

 

[So_Cynical]

AFR points out that because the deal is done directly with the US DOD Redflow are now a prime defence contractor.

Brisbane battery company Redflow cracks US defence contract

The firm has signed a deal to help repower a solar microgrid at a New York state airbase, in what it hopes will be one of many for the Department of Defence.

www.afr.com

 

[Dona Ferentes]

AFR points out that .. the deal is done directly with the US DOD

a first, but perhaps not the last?!

 

[Colm Doc]

Yeah, great news but I’m worried because they didn’t fill their capital raise. Have they got the funds to fill these new contracts? They need money to make more batteries.

 

[mullokintyre]

Yeah, great news but I’m worried because they didn’t fill their capital raise. Have they got the funds to fill these new contracts? They need money to make more batteries.

Yeas, that is a concern.
In the annual report the chairman mentioned the frustrations with Thailand production, but assured they were sorted out and well on the way to producing 80 MWHrs of battery per year.
The possible failure to fully sell the investors on the rights issue was highlighted in the auditors report.
As it happened, they did not get the full value from the raising.

I took advantage of todays big rise and took some profits, will hold on to the rest to see if there is another splurge.
Perhaps part of the DOD deal was some upfront funding.
Mick

 

[Colm Doc]

Yeas, that is a concern.
In the annual report the chairman mentioned the frustrations with Thailand production, but assured they were sorted out and well on the way to producing 80 MWHrs of battery per year.
The possible failure to fully sell the investors on the rights issue was highlighted in the auditors report.
As it happened, they did not get the full value from the raising.
View attachment 162589


I took advantage of todays big rise and took some profits, will hold on to the rest to see if there is another splurge.
Perhaps part of the DOD deal was some upfront funding.
Mick

Thanks Mick, I invested a few years ago and I’m down about 50%. Not a big amount so I think I’m in for the long haul. I really like the idea and maybe the product too.

 

[frugal.rock]

Chart update.
Selling today may have been a bit premature, imho, only from a gander at the chart though.

 

[Dona Ferentes]

...they didn’t fill their capital raise. Have they got the funds to fill these new contracts? They need money to make more batteries.

passed the hat around ...
.
Redflow raises a further $6.75 million, totalling $11.65 million from Entitlement Offer
Key highlights:
• Having prioritised the participation of existing shareholders in its Entitlement Offer, Redflow has received firm commitments to raise a further $6.75 million (before costs) via placement of Entitlement Shortfall shares
• No further placement of Entitlement Shortfall shares will be undertaken

 

[mullokintyre]

passed the hat around ...
.
Redflow raises a further $6.75 million, totalling $11.65 million from Entitlement Offer
Key highlights:
• Having prioritised the participation of existing shareholders in its Entitlement Offer, Redflow has received firm commitments to raise a further $6.75 million (before costs) via placement of Entitlement Shortfall shares
• No further placement of Entitlement Shortfall shares will be undertaken

Yea, I wondered which of the underwriters would take it all up.
Be interesting to see the Appendix 3Y Form 603 and Form 605 notices in upcoming weeks.
The new shares commence trading on September 27th.

I wonder how many will be looking for a stag profit?

Can't see the SP climbing any further in the short term.
Mick