Merger Update: Board & Management Changes

RNS Number : 4995T

RedT Energy PLC

15 November 2019

 

15 November 2019

redT energy plc

("redT" or the "Company")

Update on proposed merger - board and management changes

redT energy plc (AIM:RED), the energy storage technology company, announces an update on the proposed merger with Avalon Battery Corporation ("Avalon") (the "Merger"). Further to the Company's announcement on 25 July 2019 and the subsequent announcement on 1 November 2019 that interim funding had been secured, the Company wishes to announce a number of changes to its Board structure as part of ongoing Merger activities.

Jeff Kenna, who has served the Company for over a decade, will be stepping down as a non-executive director with effect from 31 December 2019.  Jeff has been with redT since its initial flotation. He served as Vice Chairman and then as Chairman from 2009 until earlier this year.  Jeff's contribution to the Company and to the Board over more than a decade has been extremely valuable.

Scott McGregor, who stepped down from the board in March 2019, will also be leaving the Company on 31 December 2019. Scott joined the Group in 2006, initially as CFO, and was promoted to Chief Executive in 2009. He has been instrumental in transforming the Company into an important player in the world energy storage sector and has played a key role in the commercialisation of vanadium redox flow machine technology across a wide range of industry sectors. Scott will assist the Company during a transition period and continue to support the delivery of a number of key commercial projects.

The Board is also pleased to announce that, subject to the successful completion of the Merger and relevant due diligence, Larry Zulch, currently Chief Executive Officer of Avalon, will join the Board of redT.  Larry will become Chief Executive of the merged business.  He has over 30 years of experience successfully commercialising advanced technologies and scaling the companies that deliver those technologies to market. He was formerly the President & CEO of Dantz Development (acquired by EMC), Photometics, PLCD, Cloud Engines, and Savvius (acquired by LiveAction). He served as VP and Officer at EMC, and as Executive Chairman of FreeRange Communications (acquired by Sprint via Handmark).  Further details concerning Larry's appointment as a director will be set out in the AIM admission document for the merged business which will be published in due course.

In the interim period prior to completion of the Merger, redT will continue to be managed by the executive management team headed by Neil O'Brien, Executive Chairman and Fraser Welham, Chief Financial Officer.

Neil O'Brien, Executive Chairman of redT commented:

"Jeff has been an unstinting supporter of the development of the group and its recent transformation to an energy storage business.  Jeff has a vast knowledge of the renewable sector and has provided knowledge, guidance and leadership to the Board.

Scott has given well over a decade of loyal service to the Group. He has shown great tenacity and energy in growing redT's predecessor Camco to be the global leader in its sector, and subsequently navigating its survival through the demise of the carbon credit sector. From this, Scott rapidly grew redT from a small research project into one of the world's leading flow battery technology companies. In addition to his achievements in creating a grid scale redT energy storage product we can be proud of, Scott's commercial efforts have created a healthy pipeline of current and potential contracts which will contribute positively to the Company's future success.

I would personally like to thank Jeff and Scott for their valuable service to the Company over the many years they have served on the Board and wish them well for the future.

It is now time for a new chapter for redT.  I am very much looking forward to the successful completion of our Merger and being able to welcome Larry to the Board.  He will bring a wealth of valuable experience and I look forward to working with him."

Larry Zulch, Chief Executive Officer of Avalon commented:

"It is difficult to imagine a more complementary combination than Avalon and redT, starting with the strengths of our respective teams. Together, we aim to form the preeminent force in vanadium redox flow batteries. I'm excited to work closely with the redT team to build an organisation that will dramatically benefit our combined customer base, both current and future, contribute positively to the global energy transition, and generate long-term value for shareholders. Finally, I'd like to express my gratitude to Scott for his years of service and his support of the Merger and integration process."

For further information, please contact:

redT energy plc Neil O'Brien, Executive Chairman Fraser Welham, Chief Financial Officer Joe Worthington, Investor & Media Relations	[phone]
Avalon Battery Corporation Larry Zulch, CEO Matt Harper, President	[phone]
VSA Capital Limited (Financial Adviser) Andrew Raca / Simon Barton	[phone]
VSA Capital Limited (Broker) Andrew Monk	[phone]
Investec Bank plc (Nominated Adviser and Joint Broker) Jeremy Ellis	[phone]

Notes to Editors

About redT energy

redT energy plc are experts in energy storage, specialising in the design, manufacture, installation and operation of energy storage infrastructure which creates revenue alongside reliable, low-cost renewable generation for businesses, industry and electricity distribution networks. Using patented vanadium redox flow technology to store energy in liquid, redT's own energy storage machines can be run continually with no degradation: charging and discharging for over 25 years, matching the lifespan of renewable assets in on-grid, off-grid and weak-grid settings.

redT's energy storage solutions, developed over the past 15 years, address today's changing energy market by providing a flexible platform for time shifting surplus renewable power, securing electricity supplies and earning revenue through grid services. The Company has customers in the UK, Europe, sub-Saharan Africa, Australia and Asia Pacific. For more information, visit www.redTenergy.com

For sales, press or investor enquiries, please contact the redT team on [phone].

About Avalon

Avalon Battery was founded on the principle that productized vanadium-based flow batteries will revolutionize energy projects and play a critical role in a renewable energy future.  With operations in Fremont, California, USA and Vancouver, Canada, and a low-cost manufacturing presence in Suzhou, China, Avalon produces dependable, safe, and economical energy storage systems.

Avalon believes the foundations of its product excellence are its technology and engineering team. Since 2005, its team has been one of the global leaders in design, production and deployment of vanadium flow batteries¹; the team now counts over 140 years' experience in vanadium flow battery development, has been involved in the deployment of over 15MWh of vanadium flow batteries since 2005, and has invented over 50 related independent patents.  www.avalonbattery.com

¹ Based on searches of the US DOE Global Storage Database for electro-chemical, vanadium flow batteries understood to be in operation as at 29 October 2019.

This announcement is not intended to, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities whether pursuant to this announcement or otherwise.

The distribution of this announcement in jurisdictions outside the United Kingdom may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves about, and observe, such restrictions. Any failure to comply with the restrictions may constitute a violation of the securities law of any such jurisdiction.

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The information contained within this announcement is considered by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information will be considered to be in the public domain.

 

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