Very disappointing to see the limited support for the rights...

Very disappointing to see the limited support for the rights issue from those that are relatively ‘in the know’ compared to the rest of us. While there is nothing incorrect in the statements from the Board leading into the issue, I don’t think they were completely honest either.

The announcement to disallowed leading into the issue said that the Redflow Board continues to be confident in the company’s commercial opportunities, and each Director has agreed to participate in the Entitlement Offer.

It was also announced that Simon Hackett, the major shareholder and a reason many of us follow this company, would be subscribing for $450k of entitlements under the offer. While his full entitlement to the 1 for 1 issue at 2.5 cents was around $2.5m, you could understand Simon not committing fully given his past significant investment in the company. What was surprising was that while subscribing for $450k of new shares he also sold $224k of old shares.

While each of the Board did participate in the issue they all took up far less than their full entitlement, and the dollar amounts subscribed seemed token. T Harris $1000, B Johnson $2500, J Lindsay $5000, D Brant $10,000 and D Knox $20,000. A total of $38,500 from the Board that continues to be confident in the company’s commercial opportunities.

It should be noted that Executives of Redflow have taken a ‘temporary’ 25% cut in salaries, Directors fees have been reduced 27% and the Chairman’s fee has been reduced 60%. Perhaps they are all struggling financially with their pay cuts? I think not.

So the ‘lily has been gilded a bit’ and the credibility of those running the company has been dented in my opinion. They can be ethical when it suits but probably see their actions as business like for a public company.

Mistakes have been made going all the way back to Flex and going to market with a product that wasn’t ready either cost wise or technically (or both). We still don’t know how much it costs to produce a battery or what they sell it to installers for? That’s supposedly confidential for competitive reasons but Redflow is not competitive at present.

It's a shame they couldn't generate any interest from a corner stone investor. Say $5m from Mike Cannon Brookes, Vocus Communications or even a Chinese investor.

Redflow is living on a knife edge. Might be time to sell the technology for whatever they can get, before it runs out of money. I’ve lost confidence in the people running the company and have grave fears for its future. Sorry to be a downer.