Windflow Technology Limited held its AGM on 31st October, and reported to
Shareholders in attendance on the matters outlined below.
At their last review, the Directors had determined that the ability of the
Company to remain a going concern rested upon several things occurring.
The Directors have received indicative commitments of funds from various
parties to maintain the Company''s liquidity through until a capital raising
as described below.
The first exported turbine in the Company''s history was shipped during
October and is on track to be commissioned early in 2013. The commencement of
sales of turbines in the UK beyond that already achieved from the first
turbine has been progressed to a point where one site is in financial close
and another one is waiting on a grid offer, which Scottish and Southern
Energy have confirmed is pending.
The accord with NZ Windfarms over the mechanism for settling warranty claims
has been maintained. Windflow engineers have partially but not completely
demonstrated maintenance procedures from the use of the new work platform and
are now working on several open issues. Once these issues are resolved it is
expected that proving that such procedures are cost-saving will be
The Company is working towards a more substantial capital raising which will
proceed within two months. The Directors have taken legal and investment
banking advice in order to establish the basis of the offer to Shareholders.
are formulating that offer currently, and have formed a Due Diligence
Committee to oversee the drafting of the offer document.
The Company has canvassed some of the larger shareholders and received
comfort that it can obtain sufficient funding to meet its $1.5 million
funding requirement in the year to June 2013. It is however, still in the
process of securing bridging finance between now and the close of the capital
As previously advised, in other initiatives the Company has commenced a
process to seek buyers for the Westray project, expected to close in the
first half of 2013. It is also prospecting several parties inviting interest
in investing in Windflow United Kingdom (WUK) through the provision of any of
equity capital, construction finance, and prospective development sites.
Initial legal documents have been prepared for GD SATCOM to progress the
warranty insurance and performance bond availability and weekly
teleconferences initiated to complete the process. One of the turbine sales
outlined above will require the provision of this facility.
As reported previously, on 20 July 2012, the United Kingdom Government
published its response to the consultation on Phase 2B of the Feed-in Tariffs
(FIT) Comprehensive Review. Subject to the parliamentary process required by
the Energy Act 2008, these decisions will be brought into effect via
modifications to the Standard Conditions of Electricity Supply Licenses and
associated amendments to the FITs Order that will be laid before the United
Kingdom Parliament. The changes were to take effect on 1 December 2012. To
date the order has still not been laid before Parliament.
On-going licensing opportunities have been delayed while the above matters
have taken priority.
Angus Napier and Michael Chick were elected to the Board and replace Keith
McConnell and Simon Young who both retired by rotation. Michael Chick has
been elected Chair of the Board.
For further information please contact Michael Chick or Geoff Henderson on 03
End CA:00229216 For:WTL Type:GENERAL Time:2012-11-01 13:45:40