NZAX suspends trading in Windflow shares

Monday 9th November 2009

Trading in Windflow Technology Ltd (WTL) shares has been suspended following the company's failure to lodge an annual report by the October 30 deadline, NZX Regulation has announced this morning.

WTL applied last week for a waiver that would allow the annual report to be lodged by November 16, a month out from the delayed date for its Annual Meeting.

The suspension is the latest consequence of the dispute between WTL and its sole customer so far for its two-bladed locally developed turbines, New Zealand Windfarms Ltd (NWF).

NWF is withholding payments totalling around $3.5 million as it disputes the technical certification of the Windflow turbines, while continuing to trade despite a warning in August that the company was facing difficult trading conditions for its Te Rere Hau windfarm and that it may not be able to continue as a going concern.

WTL initiated High Court proceedings against NWF last week, saying that if payments continued to be withheld, WTL may have to take action such as slowing or closing down production in order to conserve cash reserves.

WTL shares last traded at $1.20, having fallen over the last year from above $2.90. Larger than normal volumes of WTL shares have traded in the first few days of November, during which time the share price has sunk 10 cents.

Businesswire.co.nz

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