International legal practice Osborne Clarke has advised redT energy plc, an energy storage technology company quoted on AIM, on an interim loan of up to US$2.5m (£1.9m) provided by Avalon Battery Corporation to fund ongoing working capital requirements and expenses relating to the merger between redT and Avalon.
The merger will constitute a reverse takeover under the AIM Rules for Companies. The interim loan from Avalon was funded by up to US$5m (£3.9m) being made available to Avalon by Bushveld Minerals Limited, a vanadium producer based in Johannesburg which is also quoted on AIM. In addition to the interim loan, redT has also entered into a separate agreement whereby Bushveld will be able to convert its loan into shares in the merged business
With operations in North America, Europe and Asia and sales offices in Australia and Africa, the merged business will have a global footprint and be able to capitalise on the significant opportunities for energy storage presented by the worldwide shift to renewable energy and will be a leading player in the growing energy storage market.