(Alliance News) - redT Energy PLC confirmed on Monday its merger with Avalon Battery Corp is set to go ahead, with the business to change name.
redT announced the merger in July. It is buying Avalon in an all-share deal which will see Avalon shareholders get 1.74 billion redT shares at 1.65 pence each, valuing Avalon at GBP28.6 million.
The combined company, which redT said will be a "leading player" in the energy storage market, will rename itself Invinity Energy Systems.
redT also said Monday it has placed 479.4 million new shares at 1.65p to raise GBP7.9 million, all from existing investors. Further, it is carrying out an open offer to raise a GBP6.3 million further.
redT has also agreed a loan facility of GBP3 million from Riverfort Global Opportunities PPC Ltd, which it said will provide working capital over the next three years.
London-listed vanadium and battery firm Bushveld Minerals Ltd is also to convert a GBP3.9 million loan into shares in redT.
Larry Zulch, who will lead the combined firm, said: "I am delighted today we have announced the merger of redT and Avalon into what will be called Invinity Energy Systems upon approval at redT's general meeting on April 2.
"Despite the most turbulent market conditions in decades, we were able to secure total debt and equity funding secured of GBP14.9 million, including the conversion of existing Bushveld debt of USD5 million."
"I am immensely grateful for their efforts. The support of existing investors and shareholders, especially in these market conditions, is a massive vote of confidence. We look forward to delivering on our strategy of creating the world's leading vanadium flow battery company," he added.
By George Collard; georgecollard@alliancenews.com
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