New lifeline for Windflow
Troubled New Zealand wind turbine manufacturer Windflow Technology has been thrown a financial lifeline for the second time by New York based Kiwi banker David Isles.
Windflow Technology has struggled in the past to raise capital for the manufacturing and marketing of their two-bladed wind turbines. This is the second time the company has received relief from the foreign exchange dealer who owns an 11.9 per cent share in Windflow.
Late last year Isles was fundamental in a much-needed $2 million raised to keep the company afloat until June.
The current lifeline has come in the form of a $5.8 million loan to build three turbine projects in Britain and charged to the company at approximately 20 per cent.
Sourcing more traditional loans has been problematic for Windflow due to its weak position. The share price for the company was as high as NZ$1.22 in 2007, dropping to 17 cents in March and is currently around 24 cents.
The company’s woes were blamed on lower than average wind flows and legal expenses defending action launched by a local council against the Te Rere Hau wind farm project.
Geoff Henderson, Chief Executive for Windflow says Isles will be carrying some risk with the loan.
Windflow will receive revenue from the supply of electrictiy and become a majority shareholder in the projects.
Shareholders of Windflow will be asked for their support for the projects at a special meeting on July 4.
This entry was posted onFriday, June 22nd, 2012 at 11:49 am and is filed under Latest News, Wind. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site. Both comments and pings are currently closed.