In March 2020, redT Energy plc, the energy storage solutions company, merged with Avalon Battery Corporation to form the enlarged group, Invinity Energy Systems plc (AIM:IES).
RiverFort funded, alongside majority shareholder Schroders plc, collectively providing £10m in new capital. Schroders plc, the £8bn market capped UK listed asset manager, acted as cornerstone investor for the investment with a £7m equity placing. Alongside this RiverFort provided a £3m amortising convertible loan facility with conversion rights for up to £3m over 24 months.
Completion allowed redT Energy to relist on AIM with the most efficient level of equity dilution necessary whilst also having flexibility and optionality to optimise its short-and-medium term strategy with the RiverFort funding. The merged business will have strong competitive advantages, gain financial stability and form a base for rapid growth.
The £1.5 million balance of the Loan is available for drawdown by the Company at its request as to £500,000 within two months from now at a fixed interest rate of £40,000 and £1 million at the Company's discretion within the next 24 months at an interest rate to be agreed. The Company is under no obligation to utilise the entire Loan except for the First Draw of £700,000 in order to fund the Deposit.