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RedFlow Ltd Raises $2.2M; NBN Director Takes Major Stake

RedFlow Limited (ASX:RFX) has attracted a $2.2 million investment at a 9% premium to last traded price from interests associated with internet entrepreneur Simon Hackett, and launched a rights issue.

Hackett will become the largest single RedFlow shareholder with a 9.2% stake.

Hackett is a director of NBN Co. and was appointed by Malcolm Turnbull in late-2013.

The investment by Hackett provides a major vote of confidence in RedFlow's unique zinc-bromine batteries (ZBM).

RedFlow also recently partnered with Flextronics (NASDAQ:FLEX), a US$5.6 billion manufacturer with facilities in over 30 countries, and brings manufacturing expertise and scalability.

Hackett said that RedFlow had a product that was potentially transformational to the energy industry on a global basis and that the timing of the investment was right.

"RedFlow's core zinc-bromine battery offers a smart, commercial solution to the energy requirements of several applications and has the potential to participate in transforming a rapidly changing market segment."

The placement will comprise 18.6 million shares at $0.12, (with 17.6 million of these placed with Hackett).

RedFlow has also launched a rights issue which will include Hackett, which could raise up to another $5.6 million, which has the potential to take the company through to a cash flow positive position.

Howard Stack, RedFlow chairman, commented: "It is very pleasing to have Simon as a shareholder and his experience and passion for the telco and energy sectors will be valuable to the company.

"Following the restructure in 2012, and considerable improvements in the battery quality and performance since then, RedFlow has now made significant progress in commercialising its core product in a rapidly growing market."

RedFlow's Zinc Bromine Flow Batteries

The ZBM flow battery is a high performance battery that provides high energy density and best performance in deep discharging applications.

It operates at 100% and partial charge and discharge without degradation.

Recent developments have meant that all electrical components on the battery are now DC powered and all components that previously required an auxillary AC power supply have been replaced with DC components.

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