NWF
30/10/2015 12:20
GENERAL
PRICE SENSITIVE
REL: 1220 HRS NZ Windfarms Limited
GENERAL: NWF: Final Warranty Settlement Agreed Between WTL and NWF
NZX Announcement
30 October 2015
For Immediate Release
Final Warranty Settlement Agreed Between Windflow and NZ Windfarms
NZ Windfarms Limited (NWF) has reached agreement with Windflow Technology
Limited (WTL) over the outstanding issues between the companies.
The agreement settles all matters and outstanding sums owing between the two
companies, relating to the warranties that WTL provided in the 2005 sale and
purchase agreement and subsequent related agreements. This is a full
and final settlement and will result in the termination of two
arbitrations initiated by NWF in 2014.
The agreement is conditional upon WTL obtaining shareholder approval for the
terms of the settlement. The consideration will include a cash sum of NZ$
one million as well as convertible notes (convertible into ordinary shares in
WTL) issued to NWF. If NWF elects to convert all of these notes as at the
date of settlement, NWF will hold a total of 9.9% of the Ordinary Shares in
WTL.
Ninety-seven Windflow 500 turbines were installed at NWF's Te Rere Hau wind
farm between 2006 and 2011. WTL has provided NWF with a licence to its
designs and know-how to assure the wind farm's long-term maintainability. The
turbines have all come to the end of their five-year warranty periods and
continue to operate with high availability in challenging wind conditions.
Now that full and final settlement has been reached, the two companies look
forward to a mutually beneficial ongoing relationship.
ENDS
For further enquiries contact:
Chris Sadler
Chief Executive Officer
Ph (021) 918 216
End CA:00272608 For:NWF Type:GENERAL Time:2015-10-30 12:20:18
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