REG - Trackwise Designs - UK EV OEM contract update

Trackwise DesignsAnnouncement

14/09/2022 08:15

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RNS Number : 4132Z  Trackwise Designs PLC  14 September 2022

TRACKWISE DESIGNS PLC

("Trackwise", the "Group" or the "Company")

UK EV OEM contract update

Trackwise Designs (AIM: TWD), a leading manufacturer of specialist products
using printed circuit technology, announces that it is in advanced discussions
with its UK EV OEM customer ("EV OEM") to replace the Product Manufacture and
Supply Agreement ("PMSA") that was agreed between the parties with a new
contractual arrangement.

The EV OEM announced on 11 August 2022 that it expects lower production
volumes in 2022 compared to previous estimates. The announcement of the lower
production volumes has had a knock-on impact on the availability, to the
Company, of the planned asset-backed debt funding for the remaining pieces of
capital expenditure at the new Stonehouse facility and, in addition, increases
the Company's short-term cash requirements. Consequently, the Company has
entered into discussions with the EV OEM to agree a new contractual
arrangement whereby the EV OEM will provide an advance payment against future
product deliveries, and such advance payment is expected to be backed by
security.

The wider impact of the lower production volumes is that additional funding
will be required and the Company is reviewing a number of options for
additional funding with its advisers and will provide further updates in due
course.

In addition, the Company is exploring longer term strategic investment
partnerships in order to support development and conversion of the very
significant pipeline of identified IHT sales opportunities, notably for EV
battery cell connection systems ("CCS") for UK and EU OEMs, Tier 1 suppliers,
and also for other Medical and Aerospace sales opportunities.

Enquiries:

 

 Trackwise Designs plc                                          +44(0)16 8429 9930
 Philip Johnston, CEO                                           www.trackwise.co.uk (http://www.trackwise.co.uk/)
 Paul Cook, CFO

 finnCap Ltd                                                    +44(0)20 7220 0500
 NOMAD and Broker
 Ed Frisby / Tim Harper - Corporate Finance
 Andrew Burdis / Barney Hayward - ECM

 Alma PR                                                        +44(0)20 3405 0212
 Financial PR and IR
 David Ison / Caroline Forde / Kieran Breheny / Pippa Crabtree

 

Notes to Editors

Trackwise is a UK-based manufacturer of specialist products using printed
circuit technology.

The full suite includes: Improved Harness Technology™ ("IHT") and Advanced
PCBs - Microwave and Radio Frequency ("RF"), Short Flex, Flex Rigid and Rigid
Multilayer products.

IHT uses a proprietary, patented process that Trackwise has developed to
manufacture multilayer flexible printed circuits of unlimited length. While
the technology has many applications, the directors expect that one of its
primary uses will be to replace traditional wire harness in a variety of
industries.

The Company operates from three sites, located in Tewkesbury, Stonehouse and
Stevenage. It serves customers in Europe and North America.

Trackwise Designs plc was admitted to trading on AIM in 2018 with the ticker
TWD. For additional information please visit www.trackwise.co.uk
(http://www.trackwise.co.uk/)

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

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