Windflow takes heart from commitment
Beleaguered Windflow Technology has taken heart from a commitment from a shareholder.
Wolfgang Rehfus, a Swiss national holds 270,000 Windflow shares and has committed to increasing his holding to 400,000 shares with an investment of $50,000 by means of a private placement. This is in addition to his $15,000 commitment to a share purchase offer.
Some of Windflow's existing shareholders meet the criteria for private placement and Windflow said it is approaching many of them to invest more than their entitlement in the share offer.
The new shares under the offer would represent 30% of the existing shares on issue. Additional shares to particular shareholders will dilute the interests of those who decline to take them up.
Windflow Technology shareholders have been asked to invest between $3000 and $15,000 in additional shares at 50c a share. The offer closes next on October 3, 2011. Windflow is seeking $2.4 million as its cash reserves run below $400,000.
The money will be used to market its intellectual property and to retain a market presence in the UK in the expectation of a favourable outcome from a December 2011 tariff review, which Windflow hopes will pave the way for sales there.
Mr Rehfus provided a letter of support exhorting other shareholders to join in and help rebuild the company.
Mr Rehfus's private placement and the subscriptions of other shareholders are conditional on Windflow’s directors considering it will remain solvent.
Windflow’s 500 turbine received IEC (Edition 3) Class 1A certification and in 2011 Te Rere Hau wind farm (97 Windflow 500 turbines totalling 48.5 MW) was completed.
Windflow said it has received interest from overseas companies in licensing its technology.
Licensing would provide revenue from annual payments and for engineering services for product support from overseas customers.
Shareholder meetings will be held in Christchurch tomorrow (Wednesday) and in Auckland Thursday.