Struggling Windflow announces novel capital-raising plans
By Pattrick Smellie
Sept. 1 (BusinessDesk) – Windflow Technology Ltd. is going back to shareholders for more capital, to fund the sale of its intellectual property, having exhausted $3.3 million raised in a $5 million offer of rights last November.
In a preliminary announcement posted on the NZAX platform, Windflow says it will offer every shareholder, irrespective of their shareholding, a one-off parcel of new shares, valued at $15,000.
However, at this stage, no detail of the number of shares being offered, the total sum sought, nor the valuation per share and any extent of dilution has been announced.
These would come in a few days once stock exchange clearances had been obtained, Windflow chairman Barrie Leay told BusinessDesk.
The funds are sought to pursue licencee sales of the company’s intellectual property, an internationally certificated, innovative drive-train mechanism that allows Windflow’s pioneering two-bladed turbine to function well in high winds.
Windflow emerged from a fraught and lengthy international certification process last year, and completed installation of 97 Windflow 500 units at Te Rere Hau windfarm, near Palmerston North, earlier this year, before announcing increasing “fundamental uncertainty” about the company’s future and winding down operations since April.
The company intended to conduct a “formal competitive process”, chief executive Geoff Henderson said in a statement posted on the NZAX platform. “Indications to date suggest that the IP has a value significantly in excess of the capital being sought.”
The company will also maintain a low-cost marketing presence in the U.K., where delays in a government subsidy scheme encouraging small-scale renewable generation have stymied Windflow’s expectation of new sales revenue.
Windflow shares trade
rarely, and last changed hands at 50 cents