Redflow [ASX:RFX] has recently entered a trading halt resulting in a massive share drop of almost 19%.
The company has gone through with a capital raising, which industry sources indicate could raise upwards of 15.6 million.
More details regarding the trading halt and capital raising are set to be released in the coming days.
Putting forth manufacturing developments
Redflow is not letting the drop impact the business in too much of a negative manner.
The company has recently developed and commercialised a new set of batteries.
It’s set to release a unique Zinc-bromine type of flow battery.
The batteries are primarily designed for stationary energy storage in industrial, commercial and telecommunications industries. Redflow is also targeting the development and sale of the batteries towards areas with large demands for energy storage.
Redflow hopes to counter its share drop by catering to what the market wants.
The company recently appointed Tim Harris as its new CEO, who will focus on the company’s growth and commercialisation.
After dialling back its residential storage market pursuit, Redflow had no choice but to focus on other matters to bounce back.
Greentechmedia.com reported that Redflow CEO Simon Hackett stated:
‘The company will continue ZCell sales to satisfy residential sector demand while recognizing that competition, cost sensitivity and commoditization may limit this segment’s ultimate growth potential for Redflow.’
The company has been going through a halted delay in trading for almost a year now as it has been dealing with various technical problems.
Redflow has gone through with its promise of pursuing its residential storage products, while also placing more focus on the telecom sector.
Editor, Money Morning
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