Windflow to seek more capital, new prospects
Christchurch-based two-bladed wind turbine maker Windflow Technology needs more money and a licencing deal with a major manufacturer.
It recently posted a $1.5 million half-year loss to December 2016 and had negative equity of $4.5m, reflected in the value of the shares at 1c each.
Founder and director Geoff Henderson said his focus was on seeking licensing agreements with established three-blade turbine manufacturers to use Windflow's synchronous generators which protect against power surges.
"We're transitioning out of the eco market which hasn't worked for us."
He said it was disappointing because Windflow had proved the two-bladed technology but market conditions had been unfavourable.
"It's no secret our situation has been tight for some time and we can't go on like this forever but there are a number of opportunities.
"I know shareholders have been disappointed. It's not easy to be green," Henderson said.
The future lies in the hands of major shareholder David Iles because the company has an aggregate liability for a shareholder loan of $19m at 22 per cent interest a year, with repayments due to begin in October.
Iles also has a general security agreement over the assets of the company.
In September last year Iles provided a letter of support that was "a significant factor in the directors' consideration the company remains a going concern" the latest profit report said.
Remaining a going concern depended on obtaining capital in the order of $10m from existing or new shareholders, obtaining new licensees of the technology, continued support from shareholder Iles, developing projects, or selling some completed turbine projects in the UK.
Windflow had reduced its UK activity to maintaining eight turbines in Scotland where it owned six of them. UK government policy had moved away from supporting wind power.
And the New Zealand market was unfavourable because of ample supply of power and weak prices for carbon in the global emissions trading markets.
But Henderson said he was travelling to a conference in Melbourne where there were prospects for the synchronous generators.