Christopher Adams

The Business Herald’s markets and banking reporter.

US licensing deal to keep Windflow going

Photo / Thinkstock
Photo / Thinkstock

The boss of Windflow Technology says a licensing deal the struggling turbine maker has reached with a US company will help keep the wolf from the door.

Christchurch-based, NZX-listed Windflow has signed an agreement with satellite dish manufacturer General Dynamics SATCOM Technologies to jointly develop, build and market the Windflow 500 lightweight, two-bladed 500kW turbines.

Chief executive Geoff Henderson said that under the agreement the US firm would have exclusive rights to sell Windflow products in North and South America, Africa and US territories and military bases worldwide.

The 10-year agreement provided co-funding for the development of a 60 Hz version of the company's existing high-speed (class A) turbine, as well as a 500kW turbine designed for lower wind speed locations found in North America and other parts of the world, the company said.

In September last year Windflow had only $400,000 in cash reserves and needed to raise over $2 million from shareholders and other sources.

At that time the company, which posted a $7.03 million loss in the 12 months to June 30 last year, said the capital rasing would allow it continue through to June 2012

In October Windflow was granted a reprieve when an investor agreed to underwrite a $2 million capital raising.

Henderson would not go into specifics about how much was being invested by the US company, but said revenues gained from the licensing deal would "certainly be helpful in carrying on into the future".

- NZ Herald

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