Windflow looks to raise $5 million
Windflow Technology will go ahead with the capital raising signalled in its annual report and at the company’s recent annual meeting, as it looks to raise about $5 million.
The NZX-listed company (NZX:WTL) intends to make a one-for-two rights issue, mainly to allow the company to take advantage of an immediate opportunity for sales of the Windflow 500 wind turbine into the United Kingdom market.
“As stated at the annual meeting and advised earlier to NZX, less than three months ago Windflow appointed a UK company, Ventus Green Energy Ltd, as exclusive distributor of Windflow turbines in the UK,” said Windflow chairman Barrie Leay.
“This followed the introduction of British Government policies to encourage the installation of new low carbon electricity generation, including major incentives for purchasers of 500 kW turbines such as the Windflow 500.
“Windflow considers it prudent to raise additional capital to provide an appropriate balance sheet and enable the company to take up the business opportunity to develop exports to the UK market.”
The company will hold public information evenings throughout the country in mid-November.
It has existing issued capital of 11,993,489 shares, with 5,996,745 new shares to be issued.
Shares will be offered at an issue price of $0.90 per new share, which represents a 14% discount to the last sale price immediately before the company’s annual meeting.
It is at the lower end of the trading range of Windflow Technology shares during the last 12 months of $0.84c to $1.51.
The issue will be partially underwritten by Aeolian Property, which has agreed to subscribe for placement shares up to a maximum of 1,111,111 shares at the rights issue price of $0.90 per new share.
Aeolian Property is an investment group that includes some original investors in Windflow Technology such as Windflow founder Geoff Henderson.