15 Sep 2009

Motor manufacturer seeks $8.5m

7:29 am on 15 September 2009

Wellington Drive Technologies plans to raise $8.5 million from its main shareholder.

The maker of energy efficient motors says shareholder Hunter Hall will get 85 million shares at 10 cents each, lifting its stake from just under 20% to about 33%.

Wellington Drive also intends to sell about 50 million shares to other shareholders, though details are still to be developed, as well as undertake a share purchase plan.

Chief executive, Ross Green, says it needs money to supply its large customers.

Some analysts say Wellington Drive would run out of money by the end of the year without the cash it is raising, but Mr Green says only that cash is getting a bit lower than company would like.