HydroWorks looks to NZ investors for $2m
Christchurch-based HydroWorks has completed hydro-engineering projects in Melbourne and is about to sign up for new work in Indonesia.
Managing director Andrew Rodwell said the company will soon begin another, bigger contract for the Melbourne Water Department where it has just completed commissioning five minihydro energy systems.
Rodwell expected to announce other contracts for hydro work in Indonesia in two or three weeks.
The announcement of further work comes as the company seeks up to $2 million in a just-launched bond offer to be marketed mainly in New Zealand after disappointing capital-raising efforts in Australia this year.
HydroWorks is one of several startups within the Powerhouse Ventures group of companies, which is 22 per cent owned by the Christchurch City Council’s Canterbury Development Corporation.
Powerhouse holds 22.7 per cent of shares in HydroWorks, with the balance held by various shareholders.
An investment fundraising roadshow in Australia ahead of a possible stock exchange listing was less successful than hoped for, raising just $500,000. Last year the company raised $1.5m.
Rodwell said New Zealand investors would be more familiar with the company.
The interest rate for the 12-month bond offer is a high 10.5 per cent, reflecting the risk. There is an option of 9.5 per cent over six months. The minimum investment is $10,000.
The recently-completed work for Melbourne Water involved the urban water supply network and recovery of excess energy, converting it to electricity and into the Melbourne network.
The excess energy is a byproduct of the height differences between Melbourne’s main water storage reservoirs and Melbourne’s inner-suburb reservoirs.
HydroWorks’ plants, known as Climate Defenders, trap the energy and return it to the community.
They are designed and assembled by HydroWorks using New Zealand-made mini-hydro turbines.
Christchurch-based Mitton Electronet provided the electrical design for the Climate Defenders, which can be used by water utilities, industries and irrigation schemes.
Asset sale imminent
Fonterra’s financially troubled Chinese investment partner Beingmate has seen its share price tumble 10 per cent amid news it will make an imminent announcement about an asset sale. Share trading has been suspended until details of the sale are revealed in the next few days. Fonterra confirmed that Beingmate Infant & Child Ltd had indicated its intention to sell major assets to its controlling shareholder, Beingmate Group Co Ltd. ‘‘In keeping with listing regulations, while the details of the transaction are being [confirmed], Beingmate I&C Co Ltd have applied to the Shenzhen Stock Exchange for a suspension of share trading. This also safeguards existing investor interests, in the event of any related share price fluctuations,’’ Fonterra said in a statement. Beingmate Infant and Child would issue an update within five days.
Grocery bills jump in June
Food prices have jumped in June, fuelled by record prices for kumara and butter and a big hike in the price of avocados and soft drinks. The average price of food rose 0.2 per cent in a single month, according to Statistics New Zealand, with kumara reaching $8.18 a kilogram and a 500g block of the cheapest butter costing $5.05. When compared with a year ago, food prices were up 3 per cent. The increase is well above the latest annual inflation rate of 2.2 per cent. Avocados were a luxury, costing $4.52 each, up from $3.38 in May, which put them back near the record price they reached in June last year. Fresh fruit and veggie prices dropped 0.4 per cent in June, helped by lower prices for lettuces and broccoli.
Adviser forged clients’ initials
A former financial adviser forged clients’ initials and changed medical information, causing ‘‘significant distress’’ when an insurer later avoided a claim. After admitting the offending, Anthony Norman Wilson was yesterday ordered to repay more than $16,000, and sentenced to 150 hours’ community work and six months’ community detention. Wilson was in February named as facing six charges brought by the Financial Markets Authority. He later pleaded guilty at the Auckland District Court to four charges, including three for making a false document for pecuniary advantage and one for dishonestly using a document for pecuniary advantage.