1 November 2012
Windflow Update
Windflow Technology Limited held its AGM on 31st October,
and reported to Shareholders in attendance on the matters
outlined below.
At their last review, the Directors had determined that the
ability of the Company to remain a going concern rested
upon several things occurring.
The Directors have received indicative commitments of funds
from various parties to maintain the Company's liquidity
through until a capital raising as described
below.
The first exported turbine in the Company's history was
shipped during October and is on track to be commissioned
early in 2013. The commencement of sales of turbines in the
UK beyond that already achieved from the first turbine has
been progressed to a point where one site is in financial
close and another one is waiting on a grid offer, which
Scottish and Southern Energy have confirmed is pending.
The accord with NZ Windfarms over the mechanism for
settling warranty claims has been maintained. Windflow
engineers have partially but not completely demonstrated
maintenance procedures from the use of the new work
platform and are now working on several open issues. Once
these issues are resolved it is expected that proving that
such procedures are cost-saving will be significantly
easier.
The Company is working towards a more substantial capital
raising which will proceed within two months. The Directors
have taken legal and investment banking advice in order to
establish the basis of the offer to Shareholders. are
formulating that offer currently, and have formed a Due
Diligence Committee to oversee the drafting of the offer
document.
The Company has canvassed some of the larger shareholders
and received comfort that it can obtain sufficient funding
to meet its $1.5 million funding requirement in the year to
June 2013. It is however, still in the process of securing
bridging finance between now and the close of the capital
raise.
As previously advised, in other initiatives the Company has
commenced a process to seek buyers for the Westray project,
expected to close in the first half of 2013. It is
also prospecting several parties inviting interest in
investing in Windflow United Kingdom (WUK) through the
provision of any of equity capital, construction finance,
and prospective development sites.
Initial legal documents have been prepared for GD SATCOM to
progress the warranty insurance and performance bond
availability and weekly teleconferences initiated to
complete the process. One of the turbine sales outlined
above will require the provision of this facility.
As reported previously, on 20 July 2012, the United Kingdom
Government published its response to the consultation on
Phase 2B of the Feed-in Tariffs (FIT) Comprehensive Review.
Subject to the parliamentary process required by the Energy
Act 2008, these decisions will be brought into effect via
modifications to the Standard Conditions of Electricity
Supply Licenses and associated amendments to the FITs Order
that will be laid before the United Kingdom
Parliament. The changes were to take effect on 1
December 2012. To date the order has still not been laid
before Parliament.
On-going licensing opportunities have been delayed while
the above matters have taken priority.
Angus Napier and Michael Chick were elected to the Board
and replace Keith McConnell and Simon Young who both
retired by rotation. Michael Chick has been elected Chair
of the Board.
ENDS
For further information please contact Michael Chick
or Geoff Henderson on 03 365 8960
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