REG - MTI Wireless Edge - Further investment into P.S.K Wind Technologies

MTI Wireless EdgeAnnouncement

06/05/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250506:nRSF4352Ha&default-theme=true

RNS Number : 4352H  MTI Wireless Edge Limited  06 May 2025

 

6 May 2025

 

 

MTI Wireless Edge Ltd

("MTI" or the "Group")

 

Further investment into P.S.K Wind Technologies Ltd.

 

MTI Wireless Edge Ltd (AIM: MWE), the technology group focused on
comprehensive communication and radio frequency solutions across multiple
sectors, is pleased to announce that its wholly-owned subsidiary MTI Summit
Electronics Ltd. ("MTI Summit") has increased its ownership of its subsidiary
P.S.K Wind Technologies Ltd. ("PSK") via a new equity investment of NIS
600,000 (approximately US$170,000) (the "Investment"). Following the
Investment, MTI Summit will own 60% of PSK.

As highlighted in MTI's final results for the year ended 31 December 2024, the
Board believes that PSK has now resolved the issues it encountered in 2024 and
has begun 2025 with a very healthy order backlog and a long pipeline of
opportunities driven by Governments seeking to increase their investment in
defence. This has been evidenced by the recent defence contract secured by
PSK, worth approximately US$0.8m, which was announced on 28 April 2025. The
Board believes that the outlook for PSK is strong and it is poised to return
to growth in 2025.

Background to the Investment

On 4 January 2022, MTI announced that MTI Summit had acquired 51% of PSK (the
"Acquisition"). In addition to the Acquisition, an earn out mechanism was in
place under which further consideration could potentially be payable to the
vendors of PSK (the "Earn Out") and that MTI Summit has an option to purchase
and the vendors of PSK have an option to sell to MTI Summit the remaining 49%
of PSK (the "Option") starting from 2027. The Earn Out has now lapsed and no
further consideration is payable to the vendors of PSK. Following the
Investment, the Option has been modified to reflect that the vendors' holding
in PSK is now 40%. The remaining terms of the Option remain as set out in
MTI's announcement of 4 January 2022.

The consideration for the Investment is to be funded out of MTI's existing
cash resources.

MTI's CEO, Moni Borovitz, commented: "We are pleased to have completed this
transaction which extends our ownership of PSK and reflects our view of the
potential of the business which has been further enhanced by the global
increase in defence spend. The outlook for PSK and the Group as a whole is
positive, and we expect 2025 to be a successful year."

Further information about PSK

PSK specialises in the development, manufacture and integration of
communication systems and advanced monitoring and control systems for the
Government and defence industry market.

For the year ended 31 December 2024, PSK achieved unaudited revenue of NIS
13.4m (approximately US$3.7m) and an unaudited loss before tax of NIS 2.9m
(approximately US$0.8m). As at 31 December 2024, PSK had unaudited net
liabilities of NIS 1.8m (approximately US$0.5m). As MTI consolidates 100% of
PSK into the Group's consolidated accounts, the Board does not expect there to
be any material change to the Group's financial accounts following the
Investment. However, the Board will reevaluate the carrying value of the
goodwill that is currently held in the MTI accounts for PSK and the contingent
liability in respect of the Option over the course of this year.

 

For further information please contact:

 MTI Wireless Edge Ltd                                          +972 3 900 8900

 Moni Borovitz, CEO                                             http://www.mtiwirelessedge.com
                                                                (https://url.avanan.click/v2/___http:/www.mtiwirelessedge.com___.YXAxZTpzaG9yZWNhcDphOm86NTA2ODhlYzU1NzE3NDg0YWIzZWExMDljN2E2YzQ4OGI6NjpiY2U0OjY0MDM5MmE2YTliMzA5MjU1YWJkOGUzMGQwZGExNDU5NjYxOWYwNGY3YzYxMTY2NGRkODU2YzQxMzhkZTc4MTY6cDpUOk4)

 Allenby Capital Limited (Nomad and Joint Broker)               +44 20 3328 5656

 Nick Naylor/Alex Brearley/Piers Shimwell (Corporate Finance)

 Guy McDougall/Amrit Nahal (Sales and Corporate Broking)

 Shore Capital (Joint Broker)                                   +44 20 7408 4090

 Toby Gibbs/George Payne (Corporate Advisory)

 Fiona Conroy (Corporate Broking)

 Novella (Financial PR)                                         +44 20 3151 7008

 Tim Robertson/Safia Colebrook

 

 

About MTI Wireless Edge Ltd. ("MTI")

Headquartered in Israel, MTI is a technology group focused on comprehensive
communication and radio frequency solutions across multiple sectors through
three core divisions:

Antenna division

MTI is a world leader in the design, development and production of high
quality, state-of-the-art, and cost-effective antenna solutions including
Smart Antennas, MIMO Antennas and Dual Polarity Antennas for wireless
applications. MTI supplies antennas for both military and commercial markets
from 100 KHz to 174 GHz.

Internationally recognized as a producer of commercial off-the-Shelf and
custom-developed antenna solutions in a broad frequency range, MTI addresses
both commercial and military applications.

MTI supplies directional and omnidirectional antennas for outdoor and indoor
deployments, including smart antennas for 5G backhaul, Broadband access,
public safety, RFID, base station and terminals for the utility market.

Military applications include a wide range of broadband, tactical and
specialized communication antennas, antenna systems and DF arrays installed on
numerous airborne, ground and naval, including submarine, platforms worldwide.

Water Control & Management division

Via its subsidiary, Mottech Water Solutions Ltd ("Mottech"), MTI provides
high-end remote control and monitoring solutions for water and irrigation
applications based on Motorola's IRRInet state-of-the-art control, monitoring
and communication technologies.

As Motorola's global prime-distributor Mottech serves its customers worldwide
through its international subsidiaries and a global network of local
distributors and representatives. With over 25 years of experience in
providing customers with irrigation remote control and management, Mottech's
solutions ensure constant, reliable and accurate water usage, increase crops
quality and yield while reducing operational and maintenance costs providing
fast ROI while helping sustain the environment. Mottech's activities are
focused in the market segments of agriculture, water distribution, municipal
and commercial landscape as well as wastewater and storm-water reuse.

Distribution & Professional Consulting Services division

Via its subsidiary, MTI Summit Electronics Ltd., MTI offers consulting,
representation and marketing services to foreign companies in the field of RF
and Microwave solutions and applications including engineering services
(including design and integration) in the field of aerostat systems and the
ongoing operation of Platform subsystems, SIGINT, RADAR, communication and
observation systems which is performed by the Company. It also specializes in
the development, manufacture and integration of communication systems and
advanced monitoring and control systems for the Government and defence
industry market.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDFFFEIELIEIIE