In the midst of a global credit meltdown and capital raisings falling over, one company says it's been able to actually raise some money from New Zealand investors.
Local wind turbine maker Windflow today said it had been able to raise $8.22 million for the next stage of its development.
It was hoping to raise $10.59 million, but says it is "pleased with the overall outcome" - representing a shareholder uptake of nearly 80 per cent.
"This highlights the ongoing commitment and confidence of our shareholder base in Windflow's future."
Late last month the global financial crisis was blamed for putting the PGG Wrightson plan to buy half of the Silver Ferns meat co-operative on hold. PGG was unable to secure bank debt for a $145 million initial payment.
NZ Farming Systems Uruguay, the PGG spin off that is developing NZ-style dairy farms in South America, said this week that it too had deferred plans to raise capital for expansion.
Christchurch-based Flight Experience Group, which includes mortgage broking shelved its plans for a sharemarket listing this year. It was going to have been the only new listing on the NZX in ten months.
The company developed a low-cost flight simulator for recreational use and professional pilot training..
Instead of looking at listing, the company decided to seek more private equity.
Windflow chief executive Geoff Henderson said the additional equity capital investment raised would enable Windflow to accelerate its development of new variants of the Windflow 500 wind turbine and entry into new market sectors.
The first stage of the capital raising was a $5.04 million rights issue in November last year, which was fully subscribed. The new shares issued had an option attached that was exercisable a year later at $3.30 a share.
Windflow shares are listed on the alternative exchange of the NZX, where smaller companies are encouraged to list. Its shares last changed hands at $2.85 each.
A further $2.6 million was raised through the second stage options exercise which closed last month.
Private share placements, also at $3.30 per share have added nearly $580,000 to the capital raising.
Windflow makes two-bladed turbines that it says are better suited to NZ wind conditions. They are smaller than the three blade turbines seen in existing wind farms.
State owned power company Mighty River power will now buy a 19.95 per cent stake in Windflow, buying new shares.
Announcing the Windflow deal in June, Mighty River said it had also entered conditional arrangements which meant that Windflow could build a wind farm outside Wellington on Mighty River's behalf.
Mighty River was seeking to add wind to its renewable electricity generation portfolio, with the aim of developing up to 500 megawatts of wind power by 2015.
- HERALD ONLINE