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Christchurch wind turbine maker Windflow Technology raised just half its target in the second stage of a capital build, and is indicating global financial turmoil was a factor.
Chief executive Geoff Henderson today said $2.6 million, almost half the target set a year ago, was raised from shareholders exercising entitlement to additional shares under an options programme which ended on September 30.
"While the options were not fully taken up, having coincided with the financial crisis, falling global markets and a general lack of investor confidence, the capital raising can be regarded as a solid achievement," Henderson said.
In December, Windflow said $5.04m of new shares were issued in the first phase of the capital raising.
Windflow's announcement is among several recent indications that the worldwide credit crunch is beginning to bite for New Zealand companies.
This week PGG Wrightson blamed "extreme financial market conditions" for missing a first payment of $145m in its $220m plan to by a 50 per cent stake in meat processor Silver Fern Farms.
Henderson said Windflow was looking forward to the capital subscription mid-month by Mighty River Power when it bought a 19.95 per cent shareholding in Windflow.
Windflow also announced this week that a further order of 32 turbines was confirmed by the Te Rere Hau joint venture for its wind farm near Palmerston North.
Windflow shares were down 5c or 1.6 per cent to $3 around noon today, from a year high of $4.25 in July, but above the lowpoint for the year of $2.70 in June.
- NZPA
