20 Oct 2011

Lifeline for Windflow Technology

7:10 pm on 20 October 2011

Windflow Technology has been thrown a last-minute lifeline.

The struggling wind turbine maker has been trying to raise another $2 million from investors to keep afloat until June next year, while it finds new sources of revenue.

It has battled a lack of orders, has sold spare parts and is canvassing American firms to license its intellectual property for its turbines in that country.

The $2 million share purchase plan closes on Thursday, and as of Wednesday it had managed to raise only $1.6 million.

But the company announced late on Wednesday that one of its shareholders will buy any remaining shares to take the total to $2 million.

Windflow's chief executive Geoff Henderson says the investor, who wants to remain anonymous, has also offered up to $1.65 million in loans to fund the first three turbines to be installed in the UK, subject to those projects being confirmed more firmly.

He says Windflow has also sold TRH Services - a wholly owned subsidiary set up to operate and maintain New Zealand Windfarm's Te Rere Hau wind farm.

Mr Henderson says the sale, to New Zealand Windfarms, will result in a cash payment which will also help the company's cashflows.