Windflow seeks bridging finance pending capital from shareholders
BUSINESSDESK: Windflow Technology, whose shares have lost almost two-thirds of their value in the past year, says it is seeking bridging finance to tide it over until it can arrange to raise more funds from shareholders.
The funding update comes after Windflow said in September that it urgently needed to put funding in place to ensure it could remain a going concern. Its loss for the year narrowed to $3.7 million from $6.8 million.
Today the company says it has received "indicative commitments of funds from various parties to maintain the company's liquidity through until a capital raising".
There is some comfort that it can raise enough funding to meet its $1.5 million requirement for the year ending June 30, 2013, and "is in the process of securing bridging finance between now and the close of the capital raise".
The company has begun seeking buyers for its Westray project in the UK and is "prospecting" several parties inviting interest in investing in its Windflow UK unit.
Windflow expects to proceed with a capital raising within two months and has taken legal and investment banking advice before making the offer to shareholders.
The shares last traded at 19 cents, valuing the company at $3.75 million. The shares have tumbled 62% in the past 12 months.