Windflow raises $3.3mln in $5.4mln capital-raising bid
By Pattrick Smellie
Dec. 8 (BusinessDesk) – Two-blade wind turbine manufacturer Windflow Technology Ltd. says it can turn to potential private investors if it needs to top up after raising $3.3 million in an offer to existing shareholders for $5.4 million in a one-for-two renounceable rights issue.
The total includes a $1 million partial underwrite from original shareholders, through Aeolian Property Co.
“At this stage, we are in reasonably good shape cash-wise,” NZAX-listed Windflow’s chairman, Barrie Leay, told BusinessDesk. One of the key reasons for raising the additional capital was to satisfy Windflow’s bankers ahead of beginning exports to the U.K.
“The funds will primarily be used to support Windflow’s entry into the United Kingdom wind turbine market, where the incentive of a Feed-In Tariff recently introduced by the UK Government has created high levels of enquiry for the company’s IEC certified 500 kW wind turbine,” said Leay.
Windflow’s 500 kilovolt turbine is ideally suited to the British scheme, which subsidises single turbine installations. Its U.K. sales agent, Ventus Green, is building orders particularly from Scottish farmers. However, planning permissions are required before a firm order can be placed.
“While the process is time consuming because of the large number of existing enquiries, and is expected to extend well into 2011, substantial progress is being made,” said Leay.
Windflow is also currently commissioning Stage 4 of the Te Rere Hau wind farm near Palmerston North, owned by NZX-listed New Zealand Windfarms Ltd., which will by mid 2011 increase the number of operating Windflow 500 turbines on this site from 65 turbines to 97.
Infrequently traded, Windflow shares today fell 2.3% to 84 cents, one cent above their low point for the last 12 months.