The AIM-listed fuel cell and electrochemical company said it had been in discussion with RFC for some time. Mark Selby, its chief innovation officer, will join the board of RFC to support the commercialisation of its technology.
In exchange for providing advice and expertise to RFC, Ceres will receive an 8.4% shareholding in RFC. Ceres has the opportunity to assess RFC’s technology in this period and if the technology proves compatible with its own strategy, it has a 12-month option to acquire the balance of the outstanding share capital for up to £25 million. This comprises a 50% initial payment on exercise and a 50% deferred payment based on commercial success, both payable in Ceres shares.
RFC is an early-stage company that has a strategy to develop the world’s lowest-cost flow battery – a hybrid between a fuel cell and a battery that decouples power from energy.
Read More: Ceres Power PLC’s continues to make commercial deals for its technology