Investors pile into ex-IKEA erector AssembleBay’s new vanadium adventure
AssembleBay’s plans to abandon its furniture assembly biz and head into vanadium has got investors sitting up and taking notice.
The troubled company (ASX:ASY), which once labelled itself ‘the internet’s number one resource for assembling things’, says it has received strong interest in its plans to acquire ScandiVanadium Australia via a reverse takeover — and it’s upping a capital raising.
A reverse takeover typically happens when a private company buys a controlling stake in a public company to achieve a stockmarket listing without an initial public offering.
AssembleBay revealed at the end of July that it had struck a deal to acquire ScandiVanadium, which owns the Skåne vanadium project in Southern Sweden, and it would raise $2.5 million to help the deal along.
Today the company told investors that it will now accept oversubscriptions to raise a total of $3 million at 2.7c each.
This would give it a $9.5 million market cap on re-listing. AssembleBay currently has a market value of just $4.5 million.
Top performing battery metal
AssembleBay is making its foray into the vanadium because it is the best performing battery metal so far this year.
Vanadium is primarily used to produce high strength specialty steel alloys, with the steel industry accounting for about 90 per cent of current vanadium consumption.
However, big demand growth is expected from the energy storage market.
Global vanadium demand for use in redox flow batteries is expected to jump from 2 per cent currently to 20 per cent by 2030.
About 15 tonnes of vanadium pentoxide (V2O5) is required to construct a 1.6MWh vanadium redox flow battery (VRFB) unit.
Grid scale VRFBs have been deployed to date in California, Washington, Hawaii, Singapore, and Japan.
Rongke Power in Dalian province, China, is building an 800MWh VRFB, which will need about 7000 tonnes of V2O5.