A week after revealing a big new contract for its 'not a lithium battery' battery in California, Redflow has launched a near $19 million fund raising through a one for two non-renounceable entitlement issue.

The issue will be made at 21 cents a share, 9% down from the 23 cents a share on Monday (The shares went into a trading halt on Tuesday and came out of it yesterday after the issue terms were revealed).

The plan is that if fully subscribed, the issue will raise $18.9 million which will see the number of shares on issue doubled - something that will put pressure on current holders to subscribe to avoid being seriously diluted.

Redflow said funds from the issue will "underpin growth in large scale multi-megawatt hour (MWh) projects, supporting pursuit of business development opportunities and key projects," Redflow said yesterday, adding that its board fully supports the issue "and eligible Directors have each agreed to participate."

"Redflow continues to experience a high level of customer interest in its unique zinc bromine flow battery technology and its ability to support multi-MWh large scale deployments," the company told the ASX.

"At the same time, government and market recognition of the need for medium to longer storage duration and the role of flow batteries in the energy ecosystem is rapidly increasing.

"After securing its first commercial scale supply contract to supply Faraday Microgrids for the Paskenta Rancheria Microgrid Project, and with an improving and growing sale pipeline,

"Redflow is well positioned to execute on current and future opportunities in key growth markets. The Company is raising funds to deliver on the demand for Redflow's battery technology.

Redflow has lifted its ambitions since raising $5 million in an issue in September 2022.

The company says it "has executed on its strategic objectives and achieved a number of important milestones."

These include: Signed the company's largest single battery sale for use in a large-scale solar and storage project to be funded by the California Energy Commission (CEC)."

"This project will provide power for the Paskenta Band of Nomlaki Indians, a U.S. federally recognised sovereign Native American nation located in Northern California. The Paskenta Rancheria Microgrid Project includes a 20 MWh long-duration energy storage system and a 5 MW solar system.

"Achieved one-year operational milestone in January 2023 for Redflow's flagship 2 MWh Anaergia installation in California, which continues to provide a critical reference site for US customers and partners."

"Improved and expanded Redflow's sales pipeline, that now stands at over 1 GWh of qualified opportunities across the US, Australia and selected international markets, with a

Redflow says it has nearly 1 MWH of customer orders for delivery in the coming months.

This issue will test the appetite of smaller investors for renewable companies.

Redflow shares dipped 6.5% on the news yesterday to end at 21.5 cents, just above the issue price and a modest show of approval from the market.