Windflow Technology Share Purchase Plan
6 October 2011
Windflow Technology has decided to extend the closing date for its Share Purchase Plan
(SPP) until Thursday 20th October and to hold a Special Meeting of
shareholders soon after that date. A
notice of meeting will be issued shortly.
The
SPP opened on 15 September with a closing date of 3 October, unless extended by
the Company. Funds subscribed to date
have totalled $1,317,000 including $693,000 under the SPP with a further
$624,000 being subscribed for private placements at the same issue price of
$0.50 per share.
Accordingly
the directors are unable to allot the shares subscribed for under the Share
Purchase Plan and have decided to extend the closing date until shortly before
a special meeting of the shareholders can be held and thereby give the
shareholders sufficient time to reconsider their support for the company and
their participation in the Share Purchase Plan.
If that extended time for participation results in sufficient further
funds being received the Special Meeting may not be necessary. The funds subscribed
will be held in trust in the interim by Link Market Services.
As
set out in Windflow’s Preliminary Announcement in mid-September, the Directors
assessed that they require a total of $2.4 million from the SPP and/or new cash
or commitments from other sources in order for Windflow to carry out its
proposed course of action and remain solvent at least through until June 2012,
during which time it expects to generate new sources of revenue.
Since
then the directors have reassessed the total required down to $2.0 million if
further restructuring is undertaken.
A
delay with the negotiation with the Fortune 500 company for the licensing of
the company's IP in North America has also occurred with that company advising
that it requires a further 30 to 60 days to complete its business case
evaluation before making any commitment.
Since
Windflow’s cash position is now depleted, the founding director, Geoff
Henderson, has provided a loan facility of $150,000 which will provide Windflow
the liquidity it needs through until the end of October. The loan is secured against six of the
additional eighteen Windflow 500 blades which the company’s wholly-owned
subsidiary Wind Blades Ltd made in anticipation of Mighty River Power’s
proposed Long Gully wind farm before it became clear that Mighty River Power
was not proceeding with that project.
Mr
Henderson is taking this step in order to signal to shareholders his strongly
held belief that the intellectual property (IP) which the shareholders have
funded is worth preserving for the long-term benefit of the shareholders if at
all possible.
For
further information:
Geoff Henderson,
Chief Executive Officer
Ph 03 365 8960