Newly public wind company Xzeres raises $4M

Xzeres will market turbines developed by Abundant Renewable Energy LLC.

Wilsonville-based Xzeres Wind Corp. has raised more than $4 million from investors as it looks to tackle the fast-rising market for small wind-energy systems.

The news marks a reversal of fortune from a year ago, when the company was fighting through bankruptcy as Abundant Renewable Energy LLC, a privately held Newberg company.

It has since been taken public after its assets were transferred into a publicly held shell company, similar to a reverse merger.

The transition was led by Core Fund Management LP, a Portland-based hedge fund that invests primarily in small-cap public companies.

Core Fund had provided a nearly $1 million bridge loan to Abundant Renewable in 2008 and received the company’s assets out of bankruptcy in exchange for relieving the debt, said Steve Shum, a principal at Core Fund and the interim chief financial officer at Xzeres.

Now Xzeres is entering a global small wind turbine market that could double in size to more than $400 million by 2013.

It does so with a market-accepted catalog of products developed by its predecessor, Abundant Renewable Energy, which in the past five years deployed about 100 wind energy systems across the country.

“It’s a startup environment, but we have the benefit of an established, well-regarded product,” said S. Clayton Wood, the company’s president.

The 12-employee company disclosed in a pair of public filings over the past two weeks that it raised just more than $4 million in capital through two private placement offerings at $1 per share.

Lack of capital led to Abundant Renewable Energy’s descent into bankruptcy. The case was dismissed in February and Core Fund pushed forward in acquiring Abundant Renewable Energy’s Assets and transitioning them into the public company, a process that concluded in March.

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