22 Jun 2012

Funding approval needed for UK move

7:05 am on 22 June 2012

The head of Windflow Technology says shareholders will effectively pull the plug on the company's move into the British market if they don't approve a proposal to fund three projects.

The struggling wind turbine maker is seeking shareholder approval to borrow $5.8 million from major shareholder David Iles, to fund three projects in Britain.

Mr Iles, who underwrote the firm's $2 million capital raising last year, will charge interest of 20 percent per annum.

Windflow chief executive, Geoff Henderson says the company has a well-thought out strategy and he expects strong shareholder support for the deal.

If the deal does go ahead, Mr Henderson says the company will resume manufacturing in Christchurch.

At least 75% of shareholders must vote in favour of the deal for it to go ahead.