Hargreaves Lansdown

RedT confirms board changes ahead of merger with Avalon Battery

Fri 15 November 2019 12:35 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

(Sharecast News) - Energy storage technology company RedT Energy updated the market on the proposed merger with Avalon Battery Corporation on Friday.

The AIM-traded firm said that, following its announcement on 1 November that interim funding had been secured, a number of changes were being made to its board structure as part of ongoing merger activities.

Jeff Kenna, who had served the company for more than a decade, would be stepping down as a non-executive director from 31 December.

The board said Kenna had been with RedT since its initial flotation, serving as vice-chairman and then as chairman from 2009 until earlier in the current year.

Scott McGregor, who stepped down from the board in March, would also be leaving the company on 31 December.

He joined the Group in 2006, initially as chief financial officer, and was promoted to chief executive in 2009.

McGregor had been "instrumental" in transforming the firm into an important player in the energy storage sector, the board said, and had played a "key role" in the commercialisation of vanadium redox flow machine technology across a range of industry sectors.

He would assist the company during a transition period, and continue to support the delivery of a number of key commercial projects.

The board also announced that, subject to the successful completion of the merger and relevant due diligence, Larry Zulch - currently chief executive officer of Avalon - would join the board of RedT, becoming chief executive of the merged business.

He had more than 30 years of experience commercialising advanced technologies and scaling the companies that delivered those technologies to market.

Zulch was formerly the president and CEO of Dantz Development, acquired by EMC, as well as Photometics, PLCD, Cloud Engines, and Savvius, acquired by LiveAction.

He served as vice-president and officer at EMC, and as executive chairman of FreeRange Communications, acquired by Sprint via Handmark.

Further details concerning Zulch's appointment as a director would be set out in the AIM admission document for the merged business, which the board said would be published in due course.

In the interim period prior to completion of the merger, RedT would continue to be managed by the executive management team headed by executive chairman Neil O'Brien and chief financial officer Fraser Welham.

"Jeff has been an unstinting supporter of the development of the group and its recent transformation to an energy storage business," said Neil O'Brien.

"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 added.

O'Brien said he had 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."

O'Brien said it was 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, added that it was "difficult to imagine" a more complementary combination than Avalon and RedT, starting with the strengths of the 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."

    The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.

    More AIM news from ShareCast

    No results were found