RedT Energy shares (LON:RED) plunged on Wednesday after the company announced that a share issue raised £5.3 million.

The energy storage solutions company said that it had raised the funds from institutional investors through a placing by VSA Capital and Investec Bank plc of 71,903,366 ordinary shares of €0.01 each, at a price of 7 p per share.

The company said that it intends to use the funds from the Placing to progress delivery of its current pipeline, and with the interest of potentially time to attracting strategic partners to support and finance the growth of the business.

Scott McGregor, CEO, RedT energy commented:

“The market for “infrastructure investment into renewables combined with storage” has arrived and is growing at an increasing rate into what is rapidly becoming a multi-billion pound market.”

Looking ahead, McGregor said the company looks to locate a partner to develop the company’s potential in the market.

He added:

“It is redT’s aim to actively seek out one or more strategic partners with global reach to support and fund the significant opportunities we are successfully developing. This approach will de-risk delivery compared to funding growth solely from existing equity shareholders, who have been extremely supportive to date.”

He continued:

“The fundraising announced today will give us the time to progress delivery of our current pipeline and to pursue investment from strategic partners to support and finance our growth plans.”

Back in September, RedT Energy announced that it has been selected as a supplier of energy storage solutions to the UK public sector.

The company announced it had been selected to be involved in Essentia’s Battery Storage Framework. Essentia is a subsidiary of Guy’s and St Thomas’ NHS Foundation Trust. Shares were up as much as 13 percent following the announcement.

Shares in RedT Energy are currently down -21.77 percent as of 12.10AM (GMT).