Windflow Technology Ltd will increase its sales capabilities to meet
anticipated demand for the Windflow 500 wind turbine in the UK market
following the closing yesterday of the Company''s rights issue to subscribe
for redeemable convertible preference shares.
The Christchurch-based wind turbine designer and manufacturer confirms that
the offer achieved in excess of the minimum required subscription level of $2
million.
In addition the Company is pleased to advise that one of its shareholders has
offered to invest a further $2 million in preference shares, which the
Company intends to issue by means of a private placement at the same price
($0.50) but following initial allotment of the preference shares pursuant to
the rights issue.
"Our many existing shareholders, along with the new investors who have
acquired rights, are supportive of our objective to take one of the world''s
most robust, yet light-weight, wind turbines into global markets," said Geoff
Henderson, Chief Executive of the NZAX-listed company. "They understand the
significant opportunity presented in Britain due to strong UK Government
programmes in renewable energy."
"Our British subsidiary Windflow UK is well under way with our initial UK
work programme based around installation of three turbines in the windy
Orkney Islands. The first turbine exported from New Zealand is now generating
electricity on the Scottish island of Westray and generating revenue for us.
This turbine earns the same as about five to ten turbines in New Zealand,
revenue that is backed by an inflation-linked UK-Government tariff contracted
for 20 years."
"With an annual investment return ranging up to 30% (depending on wind
speeds), relative ease of planning due to the turbine''s low tip-height, and
the highest output for a turbine with such a low tip-height, there is a
compelling case for purchasers of the Windflow 500."
Having provided all existing shareholders with the first opportunity to
invest in the preference shares (bearing a preferential dividend of 10%
p.a.), and having received such interest in the opportunity, the Company may
now consider further placements of the preference shares with ''habitual''
private and institutional investors.
"We have achieved well over 80% of the rights issue target of $5.1 million.
We can now immediately move forward with our plans to grow sales by
purchasing components to reduce turbine delivery times and developing
projects," said Mr Henderson. "The first step is to appoint two additional
members of the Windflow UK sales team to work alongside our dealer network.
At the same time we intend to appoint a deputy CEO who will initially be
based in the UK before relocating to New Zealand later this year."
"We now have diversified marketing opportunities through our licensed
partner, General Dynamics SATCOM Technologies based in the United States, and
under our own banner in the UK and other markets."
The final amount raised will be known when shares are allotted by next
Thursday 21 March 2013.
For further information: Geoff Henderson, CEO/Director, Ph 03 365 8960.
The redeemable convertible preference shares will not be listed on a
registered exchange. NZX Limited accepts no responsibility for any
information contained in this statement.
End CA:00234200 For:WTL Type:RIGHT Time:2013-03-15 16:12:08