Wind blows investor wallets shut

Friday 29th June 2001

By Chris Hutching

Wind turbine company Windflow Technology wants to take another breath in its public offering. Chief executive Geoff Henderson said he was investigating whether he could launch a second prospectus after receiving about $1.5 million from investors for a $3 million share offer.

The offer was due to close on July 6, after a five-week extension to the original offer launched on February 26. But someone at Windflow failed to keep note of the number of days an offer may remain open.

The company was reminded about the detail in a letter from the Companies Office on about June 21.

Mr Henderson complained he was "bitterly disappointed" about the advice and said the company was still in talks with substantial investors. It also had more advertising planned that would have borne fruit.

Earlier, on June 1, Mr Henderson had optimistically reported an "overwhelming" response, with the offer initially raising $1.1 million from 200 investors. He announced the five-week extension until July 6.

Some of the $1.1 million came from the Green Party's superannuation fund, which invested an unstated amount. Green Party co-leader Jeanette Fitzsimons said wind power provided an opportunity to meet future energy needs in a socially responsible manner. The other co-leader, Rod Donald, said investing in Windflow fitted with his party's policy of ethical investing for its superannuation fund.

They were joined by UK environmentalist and investor Teddy Goldsmith, who is the company's largest investor so far.

"Interest has been heightened by the current furore over electricity price hikes that highlight the need for alternatives such as wind power," said Mr Henderson, who has negotiated a 10-year purchase contract with Christchurch City Council and a connection agreement with Orion NZ to give the company price certainty at about 5.8 c/kWh for its first wind turbine.

Windflow chose to use newspaper and internet advertising rather than rely on a broking network. But second time around Mr Henderson said he would investigate that option. Another recent float pitched at retail investors via media advertising was Christchurch-based IndraNet Technologies, which raised nearly $5 million for its unproven technology.

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