Large Shareholder offers to make Private Placement in Windflow Technology
27 September 2011
Wolfgang Rehfus, a Swiss national who is a frequent
visitor with business interests in New Zealand, holds 270,000 Windflow shares
and is seeking to increase his holding to 400,000 shares with an investment of
$50,000 by means of a private placement in addition to the $15,000 Share
Purchase Plan. Some of Windflow’s
existing shareholders meet the criteria for private placement and Windflow is
approaching many of them regarding additional investment beyond or instead of the
Share Purchase Plan (SPP).
Windflow Technology Ltd (Windflow) shareholders
have been invited to invest between $3,000 and $15,000 in additional shares at
$0.50 under the SPP which closes next Monday 3rd October 2011. Windflow’s cash
reserves are running very low, and Windflow needs to raise a minimum of $2.4
million from the SPP and other sources (including such private placements) in
order to provide the cash resources necessary to allow it to market its
intellectual property and to maintain its presence in the UK in the expectation
of a favourable outcome from the December 2011 Feed-in Tariff review, which is
critical to unlocking the potential of the UK market.
In subscribing for his private placement, Mr Rehfus
has provided the enclosed letter of support which he has asked to be made
public so as to encourage other shareholders to “join in as well”. Mr Rehfus writes, “This is not a time to stop
the project ‘Windflow’, but to rebuild the company”. Like any subscription under the SPP, Mr
Rehfus’s private placement is conditional on Windflow having (or being likely to have) sufficient cash from the SPP
and/or other new sources to remain solvent.
Windflow
has achieved major technical success with its Windflow 500 turbine. In 2010 it
received IEC (Edition 3) Class 1A certification and in 2011 Te Rere Hau wind
farm (97 Windflow 500 turbines totalling 48.5 MW) was completed. The wind farm achieves
availability figures above 95% in some of the most challenging wind conditions
in the world.
Because of
these technical achievements, Windflow has had substantial interest from
overseas companies in licensing its technology, with one Fortune 500 company having
been in discussions with Windflow since March.
Prospective
licensing terms would provide the following advantages to Windflow:
-
License revenues with minimum annual payments
-
Revenue for engineering services for product support and development
-
The expansion of its product range with the design of a new class 2 wind turbine largely funded by the Licensee
-
Credibility and brand awareness arising from the license agreement and manufacturing
-
More rapid market development in the huge North American market than Windflow could achieve from its present base.
There will be shareholder meetings in Christchurch this Wednesday and in Auckland Thursday.
For further information:
Geoff Henderson, Chief
Executive Officer/Director
Ph 03 365 8960, www.windflow.co.nz
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