RE: Avalon/RedT28 Aug 2019 11:50
Thanks for your feedback chaps…however, RedT’s RNS states:
‘The Merger, if approved by shareholders and completed, will constitute a reverse takeover ("RTO") ‘
‘The Merger will take the form of a share-for-share acquisition of Avalon with redT shares valued at 1.65p per share, which values Avalon at $37.5m.’
I’m a tad confused here because the definition of a RTO is:
‘A Reverse Takeover (RTO), often known as reverse IPO, is the process in which a small private company goes public by merging into a larger publicly listed company.’
and ‘RTO vs. Share-For-************** - A reverse takeover can also refer to an instance where a smaller company takes over a larger one through a share-for-**************. It is so named due to the fact that it is the lesser expected arrangement of the traditional takeover of a smaller business by a larger one.’
RedT is the Listed Company and the larger of the two…so how can this be a Share-for-Share RTO where RedT acquires Avalon – surely it’s the other way around???!!!
And isn’t it RedT who is the one in trouble?
‘RedT’s future had appeared uncertain for a number of months despite the formation of a major C&I solar-plus-storage offering with European utility Statkraft. It secured a further £3.2 million of funding in April this year, but last month reported a widening loss and admitted that failure to land additional investment could result in the firm ceasing to trade by the end of November.’
Another interesting point about Avalon is their Chinese connections:
Johnson Chiang is the Co-Founder and EXECUTIVE CHAIRMAN
Johnson is a visionary corporate executive and global manufacturing operations leader. Before co-founding Avalon, Johnson was CEO at Prudent Energy, COO at Suntech Power Holdings, and division head at Foxconn. Johnson trained as an industrial engineer, and spent the first part of his career in operations management and ultimately as a corporate executive at Solectron Corporation, a two-time U.S. Malcolm Baldrige National Quality Award Winner.
Yin Degang - Managing Director, Beijing GSR United Capital Management Consulting Co Ltd is on the Board of Avalon Battery.
10 March 2019 ‘Avalon Battery vanadium battery CEO Johnson Chiang and his team visited Tongwei to discuss and exchange’…Mr. Johnson introduced the team advantage of Avalon. Avalon has already participated in many large-scale power projects in China.’
http://www.tw-newenergy.com/Article/254.html
Avalon has:
CORPORATE OFFICES AND COMMERCIAL HEADQUARTERS - Oakland, California, USA
ENGINEERING AND OPERATIONS CENTER - Vancouver, Canada
LOW COST MANUFACTURING PLANT - Suzhou, China
So who’s going to come out top gun in this RTO????
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