Windflow Technology raises $5mn in rights issue
Media Release - 2 September 2003
FOR IMMEDIATE RELEASE
Windflow Technology raises $5 million in rights issue
Windflow Technology Limited is delighted to announce that its recently completed rights issue has been very successful. With 90 per cent of the rights issue subscribed, the Christchurch-based company is now able to start planning production on the first five turbines for its initial wind farm project.
The rights issue, which opened on 28 July and closed last Friday, raised $5 million. The company's CEO, Geoff Henderson, said today that he was extremely pleased with the result and especially wished to thank the 480 existing shareholders who took the lion's share of the issue. "We've got a tremendously loyal community of shareholders, who obviously have great faith and commitment to the Windflow vision."
Now the company, established in 2000 to become the leading supplier of wind turbines for wind-power projects in New Zealand and Australia, will start work on the first five turbines for an initial wind farm project. Windflow Technology has already incorporated New Zealand Windfarms Ltd (NZWF) to be the country's first independent wind farm operator and major customer for Windflow Technology. Windflow intends to sell the units it builds, either to NZWF or to other companies, which will pay for the installation and on-site construction.
Windflow has already undertaken some preparatory work on site selection and evaluation, financial projections and commercial arrangements for NZWF. The cost of completing the work is estimated at $200,000.
"At the same time as preparing NZWF for its commercial debut, we will be completing monitoring work on the first wind turbine installed at Gebbies Pass in July," Mr Henderson said. Extensive monitoring of the turbine's performance in all weather conditions will continue for several months yet. Major components of Windflow's first turbine were made in New Zealand and assembled in Christchurch. The Christchurch City Council is taking the power from the turbine and this provides about 3 per cent of the council's power needs.