Financial Investment Opportunity is Blowing in the Wind

4 April 2001

Financial investors are being offered the opportunity to help the environment while having the potential for excellent monetary returns on the latest share offering in the environmental technology field.

Christchurch-based Windflow Technology Limited is at the world's leading edge with a wind turbine design that combines two proven technologies to reduce fatigue loads. As a result, the turbine is cost-effective, simple and reliable.

The current share offering is for Stage One of a two-stage equity-funded development, involving the construction of the first Windflow turbine, which will be trialled near Christchurch.

The second stage share offering, which will begin next year, is for the first small production run of six to 10 Windflow turbines. These will be used to market the Windflow and related products and promote further sales.

"Subscribers are being offered 2,000,000 shares (67%) in the company at $1.50 each, with a minimum individual subscription of 2,000 shares," said Geoff Henderson, Executive Director.

This new technology company is reliant on 1,350,000 shares being taken up by investors in order for the share offer to proceed. Mr Henderson is certain that the potential returns will attract investors.

"In the "Success" scenario, incorporating stages one, two and three, Stage One investors are projected to receive annual dividends from year four of $0.18c per share, rising to $0.30 per share in year 12."

Mr Henderson's vision is for the company "to become the leading supplier of wind turbines for wind power projects in New Zealand and Australia". This will involve significant growth in ongoing sales in Stage Three, which the directors intend to be self-funding, with no need for further equity offer or long-term debt.

According to Dr Neil Cherry, Chairman of Windflow Technology, there is potential for local enterprise to take advantage of the company's development.

"Wind turbine technology is of an appropriate scale for most of the manufacturing to be carried out in local companies with the resulting enhancement of local jobs. We have world-class local design and manufacturing facilities that are ready and able to build and install high class wind turbines for local, national and international situations," he said.

Dr Cherry also cited Australia as being an important market for the company as well being the source of some specialist components.

"For us to clean up our air, reduce our greenhouse gas emissions and to maintain and enhance our clean, green reputation, the time is right to invest in locally manufactured wind turbines to produce locally generated wind powered electricity."