Windflow Technology Established Level One US ADR Program
16 November 2005
Windflow is pleased to announce that its Level 1 American Depositary Receipt program is now effective.
Christchurch, New Zealand - Wednesday, November 16, 2005 - Windflow Technology Ltd ("Windflow"), an innovator in wind turbine technology, is pleased to announce that its Level 1 American Depositary Receipt (ADR) program is now effective with receipts tradable in the over-the-counter (OTC) market under the code WFLWY.
The ADR program will make Windflow more accessible to US private investors, allowing them direct equity exposure to the wind energy space, and is a vehicle with which to ensure liquidity in the stock for a US investor base. An ADR program also creates the possibility of investment by institutions that are only permitted to buy US-based securities.
Windflow CEO Geoff Henderson commented; "We are thrilled that United States investors now have the ability to invest in Windflow through the widely utilised ADR product. It signals another important step in Windflow's development, and our focus on creating significant value for our shareholders."
Windflow's Level 1 ADRs will trade freely in the OTC market and US investors will be able to obtain ADRs for Windflow shares by making enquiries directly with their brokers.
The benefit for existing Windflow shareholders is increased liquidity for their shares.
The benefit for Windflow is increased access to investment capital for any future share issues.
About Windflow Technology Ltd
Windflow Technology Ltd (NZAX: WTL), headquartered in Christchurch, New Zealand, is a New Zealand publicly listed global innovator in wind turbine design, development and manufacturing. Wind power, the fastest growing form of power generation worldwide, comprises a key aspect of the renewable energy targets set by nations in all regions of the world. Through its proprietary Torque Limiting Gearbox (TLG) and "pitch teeter coupling" (PTC) technologies, the Company overcomes fundamental industry problems which have dominated the economics of wind power generation to date. Reducing turbine mass by about 50%, the Windflow design is expected to have a fundamental 15-20% cost advantage in any market conditions. Currently commencing production in the fully deregulated domestic NZ market after 2 years experience with its prototype, Windflow is focused on significant expansion and ongoing design innovation.
American Depositary Receipts (ADRs) are commonly used to facilitate US investors investing in foreign companies not listed on a US exchange. An ADR is created when a broker purchases a company's shares on the home stock exchange and delivers those to the depositary's local custodian bank, which then instructs the depositary bank, The Bank of New York, to issue ADRs. Level 1 ADRs are not listed on any US exchange but may trade freely, just like any other security, in the OTC market, enabling US investors to obtain ADRs representing shares of non-US securities by making enquiries directly with their brokers.
About The Bank of New York
The Bank of New York Company, Inc. (NYSE: BK), is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, investment management, and individual & regional banking services. The Company's extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at www.bankofny.com.