Redflow into administration.Tough gig this battery business....

Redflow into administration.

Tough gig this battery business. Anything that doesn't have a 3 in it's element number, will struggle to survive. It's that periodic table thing.

Redflow Enters Voluntary Administration
Brisbane 23 August 2024
Redflow Limited (ACN 130 227 271) and its Australian subsidiaries (ASX: RFX) (the Redflow Group)
have entered voluntary administration. The wholly owned subsidiaries affected by the administration
are Redflow R&D Pty Ltd ACN 116 992 253, ZCell Australia Pty Ltd ACN 613 792 420 and Redflow
International Pty Ltd ACN 128 888 997.
Richard Hughes and David Orr from Deloitte have been appointed as Voluntary Administrators by
the Redflow Groups’ respective boards of directors.
Redflow has developed a strategic plan to develop a larger scale X10 battery (based on its existing
stack design) targeted at larger megawatt hour scale projects. Redflow received significant
commercial interest in the X10 battery and, with a growing customer base, was proposing a new
factory be built and commissioned in Queensland to manufacture the X10 batteries at scale.
This strategic plan requires significant capital.
Over the past nine months Redflow has engaged with a number of state and federal governments
and agencies that confirmed that significant Government support was available to fund the Redfow
plan.
In order to access these funds, however, Redflow required significant “matching funding” from the
Australian capital markets.
Based on encouraging external financial advice, Redflow considered and pursued the equity funding
sources available to it, but in the current market, has been unable to attract the required equity
support.
In the absence of such support, the Directors believe that Redflow is unable to continue as a going
concern and have no option but to place the Redflow Group into voluntary administration.
The Administrators will now undertake a review and assessment of Redflow's business and
financial position before making recommendations as to the future of Redflow. Redflow will work
with the Administrators to engage with parties to build on what Redflow has developed to date.
While Redflow is in administration, trading of shares in Redflow will be suspended. Shareholders
will be unable to transfer their shares during this time.