redT energy Secures Interim Funding
Energy storage company redT energy (LON:RED) has agreed to an interim loan of US$2.5m (£1.9m) from Avalon Battery Corporation to fund ongoing working capital and expenses relating to the potential merger with Avalon, via a monthly drawdown schedule.
Funds are being provided by AIM-listed integrated primary vanadium producer Bushveld Minerals Limited (BMN LN) as part of a US$5m (£3.9m) loan to Avalon.
The US$5m loan to Avalon will convert into ordinary shares of the merged business upon completion of the deal on the same terms as other investors participating in the targeted US$30m fundraise. Bushveld retains the right to invest further funds into the merged business as part of the fundraise.
Bushveld will receive a commitment fee of 20% of the principal amount of the loan as well as interest at 12% per annum, which will both roll-up and convert into ordinary shares on completion of the deal.
RED has also granted Bushveld the right of first refusal to supply vanadium to the merged business for two years following the successful completion of the merger, as well as board representation (assuming it maintains its equity stake at specified levels).
The deal is expected to complete in Q1 2020.
If the deal does not comRead More – Source