Update: Q1 2010 results are now out.

Net cash usage for the first quarter of 2010 was approximately $4.0 million, consistent with the Company’s  expectations.

At March 31, 2010, Catch the Wind held cash and cash equivalents of $6.6 million, compared to cash and cash equivalents of $10.6 million at December 31, 2009. Subsequent to quarter-end, the Company completed a brokered private placement of 2,576,000 units, each at a price of CDN $2.00, generating gross proceeds of CDN $5,152,000.

Outlook

“The first Vindicator unit purchase by a turbine manufacturer in Q1 was very encouraging,” added Mr. Rogers. “It reflects our strategy to qualify sales opportunities for single unit or small order sales with the various players of the renewable energy market in 2010. We expect this approach, which builds on our validation strategy, to result in larger unit orders in the near future.”

• 6.6M + 4.8M = $11.4M which without significant orders could limp CTW through to the end of year. Let’s hope Rogers, the CEO, is right that their strategy will result in larger unit orders in the near future.
• Shares out now 54,883,972
• big jump in expenses as they ramp up to production: $3,303,189 from 1,684,095
• Racer’s Edge(R) laser wind sensor demonstrates CTW may be more than a one trick pony, but it’s still that main trick I’m speculating on.

Conference Call now on.

Phil Rogers is very bullish. Initially hundreds and then a thousand yearly sales seems probable. Pleased with performance. Vindicator over 10% improvement in energy output with yaw and can do better when also control pitch.  20 – 40 wind farm customers, initial orders for 1-4 units (average of two) on 30-180 day trials with larger orders if testing successful. Turbine manufacturers have 12-18 month sales cycle, early in that phase with current customers.

Expect to transition from development to commercial footing during Q2. Expect revenues to be booked in following quarters.

The call and questions are well worth listening to.

Q1 2010 Results Preview

Catch the Wind will hold their first quarter 2010 results conference call in six hours at 10am May 13, 2010 ET. I’m staying up to listen and will share my thoughts in an update to this post.

Time for some famous last words prior to the call.

• Companies aim to minimise their cost of capital, with a few exceptions. Peeking order theory highlights how managers raise finds using the easiest path; internal cash, debt, convertible bonds and finally most expensive of all equity offerings.
• Catch the Wind aren’t generating internal cash, banks would prefer to make an instant 6% return by managing the offering, outside investors want the upside as CTW is too speculative to invest in without the upside.  The private placement was like 3b, somewhere between a convertible and full equity offering.
• I’m not expecting sales, but some bone or carrot dangling from a short stick would be good.

April 20 private placement and raises gross proceeds of CDN $5.1 million

• 2,576,000 units at a price of CDN $2.00
• Each Unit is one share and one warrant  for one half of one share exercisable at C$2.20 per whole share at any time within 24 months from the closing of the offering.
• agents received 6.0% commission and subscribed for an aggregate of 150,000 Units
• net proceeds of the offering will be used for further development, production and sales of the Company’s product lines and for general corporate purposes.
• Various Hunter Hall entities, which control more than 10% of the Company, purchased 1,175,000 Units, 46% of the offering.

Favoritism. I sure would have leapt at the offer. At least it’s good to know HH did .

2009 Year End

Contains an excellent summary of 2009 and beyond highlights.

Completed a trial program with Nebraska Public Power District (NPPD) that demonstrated that the Vindicator(R) LWS increased the energy output of a turbine by an average of 12.3 percent and significantly reduced equipment stress loads as a result of better alignment with oncoming wind.

Announced the sale of Vindicator(R) LWS units to NPPD and AXYS Technologies, a leading provider of environmental data acquisition, processing and telemetry systems for marine and terrestrial applications.

Signed an OEM distribution agreement with AXYS,

Signed a collaborative test and integration agreement with Gamesa,

Entered into a trial program agreement with TransAlta, previously known as Canadian Hydro Developers, to supply multiple Vindicator(R) LWS test units for direct side-by-side comparison

Completed a private placement of 16.7 million common shares at a price of CDN $1.30 per share, generating gross proceeds of approximately CDN $21.8 million.

Entered into a manufacturing services agreement with BreconRidge Corporation

Entered into a sales agreement with one of the world’s leading manufacturers of wind turbines for the purchase of a unit of the Company’s Vindicator(R) LWS.

Launched Racer’s Edge(R) laser wind sensor, the world’s first hand-held device that provides accurate wind speed and direction measurement data for use in sailing, boating and other sporting events where knowledge of wind conditions is a contributing factor to performance.

Named an Official Supplier of BMW ORACLE Racing, the winner of the 33rd America’s Cup Match, held February 2010 in Valencia, Spain.

Vindicator Sale March 16

• entered into a sales agreement with one of the world’s leading manufacturers of wind turbines for the purchase of a unit of the Company’s Vindicator(R) Laser Wind Sensor (LWS).

Disclosure: Long and find current price attractive.

Related posts:

1. Catch the Wind Inc
2. My Favourite Stock for 2010
3. Investometer March 2010
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