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Windflow to raise an additional $10 mill

Thursday 18th October 2007

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Christchurch manufacturer Windflow Technology is seeking to raise another $10 million, through a renounceable rights issue, to capitalise on development opportunities.

"Funds raised from our June 2005 rights issue contributed strongly to the company's progress, enabling us to move the Windflow 500 wind turbine from a prototype to a fully commercial status," chief executive Geoff Henderson says.

The turbines are now at work in the joint venture Te Rere Hau wind farm, owned by NZ Windfarms, Babcock and Brown and NP Power. The joint venture has just agreed to form an alliance with Powerco, one of New Zealand's largest energy distributors, to build infrastructure connecting the wind farm to the national grid."

Henderson says the joint venture has confirmed orders for 44 turbines which will be delivered over the next 18 months.

"We are scaling up our production facilities in Christchurch to enable Windflow to manufacture a greater number of turbines, initially to at least five turbines a month, and to broaden the commercial range of the Windflow 500."

Money raised in the rights issues will be used as additional working capital and to fund the research and development into new variations of the Windflow 500.

The offer will be for a renounceable rights issue at 1-for-4 at $3.00 per 'new share' with each new share issued accompanied by one separately tradable option, to subscribe for an additional share, exercisable on 30 September 2008 at a price of $3.30 per additional share.

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