Windflow shareholder to fund projects in Scotland

Windflow Technology will borrow $5.8m from shareholder David Iles. 

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.