Windflow to seek $5 mln to back UK opportunity

Windflow to seek $5 mln to back UK opportunity

Nov. 2 (BusinessDesk) – Two-bladed wind turbine manufacturer Windflow Technology Ltd. is to seek $5 million to underpin its marketing push into the United Kingdom, announcing a one-for-two rights issue partially underwritten by a group of founding investors.

A total of 5,996,745 new shares will be offered at an issue price of $0.90 per share, representing a 14% discount to the last sale price immediately prior to the company’s annual meeting, and is at the lower end lower end of the 84 cents-to-$1.51 trading range of Windflow shares over the past 12 months. The shares were unchanged at 99 cents in trading today.

“As stated at the annual meeting and advised earlier to NZX, less than three months ago Windflow appointed a U.K. company, Ventus Green Energy Ltd, as exclusive distributor of Windflow turbines in the U.K.,” chairman Barrie Leay said.

“This followed the introduction of British Government policies to encourage the installation of new low carbon electricity generation, including major incentives for purchasers of 500 kW turbines such as the Windflow 500.

“Windflow considers it prudent to raise additional capital to provide an appropriate balance sheet and enable the company to take up the business opportunity to develop exports to the U.K. market.”

The company will hold public information evenings throughout the country in mid-November, and will shortly issue a prospectus and other relevant documents.

The Aeolian Property Co. will subscribe for placement shares up to a maximum of 1,111,111 shares at the rights issue price of $0.90 per new share. The company comprises an investment group that includes some original investors in Windflow Technology, including founder and chief executive, Geoff Henderson.

The record date for the determination of entitlement to rights, which are renounceable, is Nov. 11.

Existing shares will be quoted ex-rights on the NZAX market from Nov. 9, with rights trading ceasing on Nov. 29, with the offer closing Dec. 3.

(BusinessDesk)

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