Shareholders in NZX-listed Wellington Drive Technologies yesterday approved a plan for a US investment group to take a 33.4 per cent stake in the company in return for an investment of about $38 million.
The North Shore-based designer of electronic motors hopes to use the cash to accelerate
its growth plans.
Chairman Shawn Beck told the company's annual meeting that US-based Source Vortex would bring substantial experience in sales, marketing and technical development as well as new capital.
Two Source principals - Michael Jude Lopitz and Aubrey Hornsby - will join the Wellington Drive board.
The additional capital would provide customers - in what was a conservative market - with confidence that the company could be relied upon to be a long-term supplier.
The money would be used to appoint additional sales staff and engineers in overseas markets.
It would also improve manufacturing methods and logistics and there was a plan to enhance Wellington Drive's range of products and services, Beck said.
The company exports most of its motors for use in products such as refrigerators and washing machines.
Yesterday, Wellington Drive was the subject of a share price inquiry from NZX Regulation.
NZX solicitor Andreas Heuser noted in a letter to the company that shares had traded on Monday at 49c a share - 10.9 per cent lower than Friday's close.
On Monday, 469,247 shares changed hands. The average daily trading volume for the previous week had been 68,015 shares.
Company secretary Ron Jackson said a Sunday Star-Times news story which had "negatively portrayed the credentials of Source Vortex principals" was the only matter directors were aware of since the close of trading on Friday.
Wellington Drive shares closed up 1c at 53c yesterday.
