August 6, 2019: UK vanadium flow battery firm RedT outlined terms on July 25 to merge with Avalon Battery Corporation, the San Francisco-based flow battery company. It will also look for a fundraising of £24 million ($30 million).
The two firms have signed a non-binding memorandum of understanding and, if approved by shareholders,the deal will see both companies combined to create a flow battery firm that will have a foothold in North America, Europe and Asia.
RedT announced in October that it was seeking strategic partners to support its continued growth.
“After an extensive search for strategic partners, getting to this stage is a major step forward,” said Neil O’Brien, RedT executive chairman. “We will have a global reach, world-leading technology and an enhanced ability to drive down production costs and attract new capital.”
Larry Zulch, chief executive of Avalon, said the two firms in combination would create a company with scale, resources and products ‘unprecedented in our segment’.
“Vanadium redox flow batteries have long been the safe, dependable and economical choice in energy storage. We can’t imagine a better opportunity than this merger to translate those qualities into business results.”
The merger, if approved, will take the form of a share-for-share acquisition of Avalon, RedT shares are valued at 1.65p which values Avalon at $37.5 million.
A fund raising is also planned. The firms said: ‘The merger remains subject to inter alia further due diligence by each party, definitive legal agreements being reached, and a total of at least £24m ($30m) of new funds being raised to fund the enlarged business. The fundraising and the merger will be subject to the approval of redT’s shareholders and the merger itself is also subject to the approval of the shareholders of Avalon.”