The current meltdown of the world’s stock exchanges has had a rather remarkable effect on the share price of Nai’Kun Wind Energy Group, the alternative energy provider that has plans to set up wind farms with an off shore power project off the Charlottes.
Nai’Kun’s stock traded in January at $3.33, on Wednesday the value of Nai’Kun stock was 41 cent, by Friday it was listed at 32 cents, a situation that was described as “not great news for our shareholders, but it doesn’t impact the progress of the project…”
Nai’Kun’s community relations representative Lucy Shaw was stressing that the slide of the stock value had no effect on the current phase of the project, as they have already secured their required funding for the construction phase of the development.
What might impact that phase however, is some news found in this report from the Vancouver Sun, which suggests that securing a source of turbines for any wind farm project is becoming next to impossible as energy providers jump on the wind oriented bandwagon.
While stock prices may go up and down (in this case it seems down is the main direction for the moment) the real stock problem may have nothing to do with the markets and more to do with suppliers of turbines.
The Daily New outlined the financial outlook in Thursday’s paper.
‘Share price won’t blow wind farm off course’
By George T. Baker
The Daily News
Thursday, October 16, 2008
Page three
As the stock market prices fall like sands in an hour glass, so goes the share price of NaiKun Wind Energy Group.
The value of NaiKun Wind Energy Group (CDNX: NKW.V) shares has been dropping steadily since the beginning of the year.
On Jan. 2 Nai’Kun’s share value was $3.33. Since then, it has slid down consistently right into yesterday when the share price was valued at 41 cents.
“The decline in our stock prices is not unique and our share price has been riding the market down, said Nai’Kun’s North Coast community relations’ representative Lucy Shaw.
Nai’Kun is preparing a 110 wind turbines, 320 MV bid into BC Hydro’s Clean Power Call Request for Proposals (RFP) as the first phase of this offshore wind energy project. The RFP was issued in June and proposals are due by Nov. 25.
Shaw said that the company’s ability to build the project and hit its benchmarks is not going to be effected by the share drop because of the amount of money they have raised so far for the construction phase will be enough.
“Obviously, it’s not great news for our shareholders but it doesn’t impact the progress of the project and we are fortunate to have raised a chunk of money before the stock market started crashing down and we have enough money to keep us going through the development project, the environmental assessment and BC Hydro’s clean power call,” said Shaw.
The TSX Venture Exchange was trading 34.60 points lower at 1,020.10 on Wednesday. The volume at noon was at 47.71 million shares.
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