By DITA DE BONI
Wellington Drive Technologies is asking shareholders to find $1.1 million to finance "aggressive marketing" of its patented brushless direct-current electric motor.
The company - listed on the stock exchange secondary board - will offer one new ordinary share, at 5c each, for every three ordinary shares.
The offer is fully underwritten by shareholders, including chairman of directors Ray Thomson and the Greenstone Fund, an institutional venture-capital vehicle holding a 16 per cent interest.
Wellington, which has never made a profit, has received its first substantial product order in 10 years of existence and hopes "millions of dollars" spent on research is about to pay off.
The company has entered into a joint venture with Australia-based Technical Motor Company to use its motor in evaporative cooling fans.
It will produce 6000 motors in the second half of next year.
Managing director Ross Green said that while Wellington had a "slight credibility problem as a 10-year-old start-up company," the new venture marked a turning point in its fortunes.
"The market can expect many more announcements from us over the next four to six months, and we believe significant profits will be made much earlier than we've predicted.
"While the company is still a high-risk investment, what we would like people to know is that over the past year we've got into a position to exploit the market more rapidly and we are very pleased with the prospects."
Mr Thomson said the motor had become more price competitive as the cost of componentry had fallen.
He said the company would make a profit within the next two years and hinted that it would consider a listing on the main board if further licensee agreements panned out.
Wellington shares have traded at around 15c in the past week.
Electric motor co in push for funds
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