RFX - Redflow Limited

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

mullokintyre said:

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

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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.

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

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

mullokintyre said:

great little brawl going on in RFX.

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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

Dona Ferentes said:

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

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

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

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


Mick

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

mullokintyre said:

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

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

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

So_Cynical said:

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

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a first, but perhaps not the last?!

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.

Colm Doc said:

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.

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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

mullokintyre said:

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

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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.

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

Colm Doc said:

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

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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

Dona Ferentes said:

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

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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

Another DOD contract announcement out this morning, they are coming thick and fast.
Redflow awarded US Dept of Energy funds for 34.4MWh project
Redflow Limited (ASX: RFX), a global leader in clean energy storage, is pleased to announce that the U.S. Department of Energy (DOE) has approved funding for a 34.4 MWh long-duration energy storage (LDES) microgrid project in which Redflow has been named as the battery provider.
The project will form part of the DOE’s US$325m LDES program which seeks to advance critical clean energy technologies, expand the adoption of renewable energy resources, and strengthen America’s energy security.
A link to the DOE announcement can be found here https://www.energy.gov/articles/bid...million-long-duration-energy-storage-projects.
A link to the specific projects under the announcement, including the Children's Hospital Resilient Grid with Energy Storage where Redflow is named as the LDES provider can be found here: https://www.energy.gov/oced/long-du...rations-projectsselections-award-negotiations
The Children’s Hospital Resilient Grid with Energy Storage (CHARGES) project will enable the Valley Children’s Hospital in Madera, California, to replace diesel generators with cleaner, more cost-effective resources at the facility, and provide a roadmap for other hospitals and critical infrastructure throughout the country to implement similar projects. Redflow will collaborate on the system with its project development partner, Faraday Microgrids.
The project is being sponsored, and expected to be co-funded by, the California Energy Commission (CEC). Valley Children’s Hospital in Madera is the only full-service pediatric facility in California’s Central Valley and regularly faces extreme heat conditions, drought, coastal smog, and poor air quality.
The 34.4 MWh long-duration energy storage and solar microgrid will enable the hospital to better serve the region's residents, even during power interruptions. This project also represents an important step toward meeting California's goal of installing 45-55 GW of LDES by 2045 to support grid reliability and its clean energy transition. Redflow CEO and Managing Director Tim Harris said: “Our batteries are ideally suited for daily use in the Central Valley’s extreme heat, and we’re proud to provide the resources the hospital needs to ensure safe, reliable operations. This combination of our technology leadership, Faraday’s trusted microgrid solutions, and the funding provided by the CEC and DOE all assist in transitioning communities to a cleaner, more energy-efficient future.

Might get that share price increase that my last post suggested would not happen.
suppose its better to be wrong on the positve side rather than be wrong with disappointment!
Mick

am totally over throwing money at 'clean energy ' stocks this has been a massive loser for me as is CCE , some of the others total ( capital ) losses

if investors like WES or SVW add this theme to their portfolios i will get exposure via holding WES, SVW, SOL etc , which i already hold

sort of like happened with my MIN and WES holding and lithium


all this 'ie in the sky' narrative would have be better done with extra solar arrays installed ( i have 3 on various properties ) and am currently insulating bit by bit those same property buildings