Bushveld Minerals to hold 8.71% of newly created Invinity Energy Systems plc

Bushveld Minerals Ltd (LON:BMN), the AIM quoted, integrated primary vanadium producer, which owns high-grade vanadium assets in South Africa, noted that redT energy plc has today received shareholder approval for its proposed merger with Avalon Battery Corporation. The merged entity will be named Invinity Energy Systems plc. Bushveld entered into a Joint Venture agreement with redT on 9 March 2020 to form a Vanadium Financing Partnership to supply vanadium electrolyte to be used in third party-owned Vanadium Redox Flow Batteries projects developed by redT. The Joint Venture agreement will be transferred to Invinity.

·     The Merger will create a leading player in the growing energy storage market with a presence in North America, Europe, sub-Saharan Africa and Asia.

·     Invinity is expected to have strong competitive advantages, gain financial stability and form a base for rapid future growth.

·     Invinity will be able to offer a VRFB that competes effectively against other energy storage technologies.

On 1 November 2019, Bushveld announced it had agreed to support the Merger with funding of US$5 million through a convertible loan to Avalon. In accordance with the terms of the convertible loan, on successful completion of the Merger the loan will convert into shares in Invinity. The previously provided US$5 million loan (together with the accrued interest and commitment fee) has been converted into 302,978,063 Ordinary Shares at a price of 1.65 pence in Invinity, representing up to 8.71 per cent of Invinity. The shares issued to Bushveld are not subject to a lock-in arrangement. 

In addition to the funding from Bushveld, Invinity has raised £7.9 million through an equity placing at 1.65 pence per share.

Under the agreement, following the completion of the Merger, Bushveld has a right to nominate a director to the Board of Invinity, subject to Bushveld retaining at least 5 per cent of the issued share capital of Invinity. The nomination of a director will be done in due course. Bushveld will retain that right after one year provided it beneficially owns at least 10 per cent of Invinity. In addition, for so long as Bushveld beneficially owns at least 20 per cent. of Invinity, it shall have a right to nominate two members of the board of Invinity.

The investment is in line with Bushveld’s strategy of partnering with VRFB companies and part of the VRFB Investment Platform (“VIP”), as announced on 1 November 2019.

Fortune Mojapelo, CEO of Bushveld Minerals Limited, commented:

“At only a few months old, our VRFB Investment Platform is already gathering momentum on the back of the investments made to date.

“Invinity starts its journey with a strong project pipeline already in place, one which it plans to grow even more in the future. Despite the global impact of the Covid-19 pandemic, the fundamental need for long duration energy storage to support the energy transition has not changed. The benefit to Bushveld of supporting this downstream vanadium-based industry is already becoming clear, and Bushveld continues to support the growth and its participation in the energy storage industry.”

Click to view all articles for the EPIC:
Or click to view the full company profile:
    Share on facebook
    Facebook
    Share on twitter
    Twitter
    Share on linkedin
    LinkedIn
    Bushveld Minerals

    More articles like this

    Bushveld Minerals

    Redox Flow Batteries: technologies and market overview

    This webinar, presented by IDTechEx Technology Analyst Daniele Gatti, will provide an introduction to Redox Flow Batteries (RFBs), addressing some of the technologies developed, and giving an overview of the flow battery market.  The increased adoption of renewable

    Bushveld Minerals

    Bushveld eyes delayed JSE debut within 12 months

    Bushveld Minerals, SA’s largest supplier of vanadium, hopes to complete a R1.73bn expansion programme to nearly triple output without calling on its shareholders to fund its plans. Bushveld had delayed its listing on the JSE due to the

    Bushveld Minerals

    China now a net importer of vanadium

    China is now a net importer of vanadium, a situation which is expected to persist, Bushveld Minerals CEO Fortune Mojapelo said on Tuesday. Speaking at question-and-answer time after presenting a solid set of financial results for 2019, Mojapelo said in

    Bushveld Minerals

    The coming vanadium battery revolution

    Vanadium: an important role in renewable energy Flow batteries look set to play an important part in the development of the global renewables market, which itself is expected to reach a size of $1.5 trillion by 2025. According

    Bushveld Minerals

    What is Bespoke Storage

    Bespoke solutions are the largest BESS’s, typically over 20 MW/ 100 MWh, either built into existing buildings, or in purpose built “Storage Stations”. Typical examples of such Storage Stations are the 15MW/ 60MWh system built by Sumitomo in

    Bushveld Minerals

    What is a Standalone BESS

    Standalone BESS solutions can be dynamically sized to suit any long-duration storage requirement, typically sized from 100kW/ 400kWh to 40MW/ 160MWh. Standalone solutions are usually made up of multiple containerised units and can stand in any convenient location

    Bushveld Minerals

    Hybrid-Mini-Grid

    What is a Hybrid-Mini-Grid A Hybrid-Mini-Grid system comprises of several different sources of energy supply, such as wind or solar, plus diesel back up, plus possibly grid supply, or any other energy resource coupled to a BESS, providing

    Bushveld Minerals

    VRFB Technology

    The VRFB is the simplest and most developed flow battery in mass commercial operations The flow battery was first developed by the National Aeronautics and Space Administration (NASA) in the 1970s and unlike conventional batteries, the liquid electrolytes

    Bushveld Minerals

    Vanadium flowing in 2020

    2020 was touted by many as the year of the vanadium redox flow battery (VRFB).  In spite of the impact of the global pandemic, this prediction is beginning to bear fruit and the year is only halfway through.

    No more posts to show