Windflow Outcome of Capital Raising
NZX and Media Statement
21 October 2011
Outcome of Capital Raising
Windflow’s shareholders have responded well to the recent Share Purchase Plan (SPP). The Waiver Decision granted by NZX Regulation on 6 October 2011 required Windflow to advise the market by 5:00 pm today as to whether or not the $2.0 million revised target had been reached. Windflow hereby advises that, together with private placements and an underwrite provided by an existing shareholder in recent days, the SPP has reached its target of $2.0 million.
Therefore the Windflow Directors have today resolved to proceed with the allotment of shares next week.
This additional liquidity will allow the company to continue its international licensing activities, such as the licence which is currently being negotiated with a Fortune 500 company in the US. Other companies have also expressed interest in licensing some or all of Windflow’s technologies. Accordingly Windflow now plans to engage outside specialists to conduct a formal process for licensing the company’s IP internationally, at least for manufacturing Windflow’s designs in and for certain international markets such as North America.
Progress towards initial turbine projects in UK continues. There are at least three single turbine projects in Scotland which now have one or more of the following in place: planning permission, an electrical connection offer and a land-owner agreement. These include North Fish Shetland and the North Harris project which Windflow has announced in the past. Windflow will now work to complete the contractual arrangements for at least three such projects to enable the projects to be financed.
As regards the upcoming Special Meeting on Wednesday 2 November 2011, this meeting will proceed as notified. The Directors will now be voting any votes and proxies they hold AGAINST the notified motion and recommend shareholders do the same.
The Company intends to hold its Annual Meeting on Wednesday 30 November 2011, and a formal notice confirming the date will be issued shortly.