Windflow shareholder to fund projects in Scotland
Windflow Technology founder Geoff Henderson is seeking shareholder approval for new projects in Scotland.
He told NBR ONLINE today they include three turbine developments in the Scottish north using the machinery sourced from local providers.
The new projects will be funded by loans of up to $5.8 million at an annual interest rate of 22% from 11.9% shareholder David Iles, plus proceeds of a $2 million capital raising last November.
At a special meeting on July 4 in Christchurch the company will put various resolutions to shareholders for approval of the ventures.
In recent months, Windflow has wound down its manufacturing in Christchurch and focused on international licencing arrangements.
This was the result of the wind turbine market in New Zealand “stalling” and resistance by potential major customers.
Mr Henderson says Britain is a good prospect because of the higher cost of electricity there.
Directors believe a further capital raising from shareholders would be highly dilutionary and unlikely to succeed.
Mr Henderson says he hopes to rebuild local manufacturing and has retained the services of the core engineering group.
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Comments and questions4
I wonder how many of these shareholders will be up to speed on the UK removing subsidies for wind farms in an upcoming bill (as reported in the UK telegraph) ?
Is this directors trying to keep their dead business alive (and therefore their directors fees) by entering an uncommerical agreement at a whooping 22% interest rate!
Perhaps turbines will be more competitive in NZ when power prices increase as a result of our corrupt government's disposal of assets.
Some people who face the moral dilemma of investing in the proposed floats having argued against them, might consider punting on Windflow instead.
If they head offshore and leave the Manawatu alone then that's a bonus. Anyone seen this?
www.palmerston-north.info