NZAX suspends trading in Windflow shares
NZAX suspends trading in Windflow shares
by Pattrick Smellie
Nov 9 (BusinessWire) - Trading in Windflow Technology Ltd (WTL) shares has been suspended following the company's failure to lodge an annual report by the October 30 deadline, NZX Regulation has announced this morning.
WTL applied last week for a waiver that would allow the annual report to be lodged by November 16, a month out from the delayed date for its Annual Meeting.
The suspension is the latest consequence of
the dispute between WTL and its sole customer so far for its
two-bladed locally developed turbines, New Zealand Windfarms
Ltd (NWF).
NWF is withholding payments totalling
around $3.5 million as it disputes the technical
certification of the Windflow turbines, while continuing to
trade despite a warning in August that the company was
facing difficult trading conditions for its Te Rere Hau
windfarm and that it may not be able to continue as a going
concern.
WTL initiated High Court proceedings
against NWF last week, saying that if payments continued to
be withheld, WTL may have to take action such as slowing or
closing down production in order to conserve cash
reserves.
WTL shares last traded at $1.20, having
fallen over the last year from above $2.90. Larger than
normal volumes of WTL shares have traded in the first few
days of November, during which time the share price has sunk
10 cents.
(BusinessWire)