Windflow Issue to Fund Growth Phase
18 October 2007
Encouraged by the past year's successful commercial introduction of its wind turbine technology, the Christchurch manufacturer Windflow Technology Ltd is seeking fresh capital to capitalise on development opportunities.
It proposes to raise $10 million through a renounceable rights issue.
"Funds raised from our June 2005 rights issue contributed strongly to the Company's progress, enabling us to move the Windflow 500 wind turbine from a prototype to a fully commercial status," said the chief executive of Windflow technology. Mr Geoff Henderson.
"Windflow 500 turbines are now at work in the joint venture Te Rere Hau wind farm, owned by NZ Windfarms, Babcock and Brown and NP Power. The joint venture has just agreed to form an alliance with Powerco, one of New Zealand's largest energy distributors, to build infrastructure connecting the wind farm to the national grid."
"The Te Rere Hau joint venture has confirmed orders of further 44 Windflow 500 turbines which we will deliver over the next 18 months. We are scaling up our production facilities in Christchurch to enable Windflow to manufacture a greater number of turbines, initially to at least five turbines a month, and to broaden the commercial range of the Windflow 500."
"The rights issue will raise additional working capital to implement increased production and also fund the research and development into new variations of the Windflow 500 that will increase our business opportunities and spread commercial risk."
'Windflow Technology has recently moved to new premises in Riccarton, Christchurch, where we can establish our new production line. We are entering an exciting phase in the Company's history."
Issue Terms
The offer will be for a renounceable rights issue at 1-for-4 at $3.00 per 'new share' with each new share issued accompanied by one separately tradable option, to subscribe for an additional share, exercisable on 30 September 2008 at a price of $3.30 per additional share.
Windflow Technology shareholders resident in New Zealand are eligible to participate in the rights issue.
Should any existing Windflow shareholder not wish to take up their entitlement they are reminded that the rights may have value on the NZAX market, and to the extent they are offered for sale the general public will have an opportunity to invest in the issue via purchasing rights.
"Windflow has been a solid performer on the NZAX over the past year," said Mr Henderson. The shares were priced this week at approximately $3.60, compared with a 52-week high of $3.96 and low of $2.40.
The record date for the issue is 2 November 2007. Trading in the rights will open on the NZAX on 5 November. Rights trading will cease on 28 November 2007 and the offer closes on 30 November 2007.
Windflow will background the rights issue and outline its progress and plans at public meetings to be held between 12 November and 22 November 2007 in Dunedin, Nelson, Wellington, Christchurch, Palmerston North, Hamilton, Tauranga and Auckland.
No money is currently being sought and no applications for shares in Windflow Technology Limited will be accepted, or money received, until the potential investor has received a prospectus. Copies of the prospectus will be available once it is registered and a copy of the prospectus will be sent to all holders of Windflow Technology Limited shares on the record date together with a letter of entitlement.
Ends
FOR FURTHER INFORMATION PLEASE CONTACT:
Warren Head
Ph: 03 365 0344 Mobile: 021 340 650