REG - Trackwise Designs - UK EV OEM Contract Update

Trackwise DesignsAnnouncement

09/05/2023 07:15

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RNS Number : 6745Y  Trackwise Designs PLC  09 May 2023

9 May 2023

 

TRACKWISE DESIGNS PLC

 

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

 

UK EV OEM Contract Update

 

 

Trackwise Designs plc (AIM: TWD), a leading manufacturer of specialist
products using printed circuit technology, announces an update on progress
under the Commercial Order for its UK EV OEM customer (the "EV OEM").

 

Contract Update

 

On 30(th) March, the Company announced that it expected a delay in the
manufacture and deliveries of the Parts to the EV OEM, whilst the EV OEM
undertakes a redesign and validation of the Parts to meet their revised design
requirements. The Change Control procedure within the Commercial Order has
been initiated, including the impact upon the Parts price and production
completion.  At this time the Company has yet to receive a formal response to
the Change Control Note issued to the EV OEM on 19(th) April 2023.

 

The Company's position is that the delay in Parts production completion and
therefore the impact upon the Parts price, has been caused by the EV OEM and
therefore is the liability of the EV OEM.

 

The Company has advised the EV OEM that it is not discharging its obligation
to conclude the CCN in good faith and, in line with the Commercial Order, the
EV OEM has until 2(nd) June to remedy the breach.

 

The delay caused by the EV OEM Change means that the planned increase in
working capital associated with start of production has now been delayed and
therefore the Company's previously announced cash runway to the end of May
2023 is now extended at least to the end of June 2023.

 

Trackwise continues to have a significant pipeline of identified IHT sales
opportunities with a number of the previously identified EV cell-to-pack CCS
opportunities progressing towards supplier nomination dates.

 

Enquiries

 

 Trackwise Designs plc                          +44 (0)1684 299 930
 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/Fergus Sullivan - Corporate Finance

 Andrew Burdis/Barney Hayward - ECM

 Alma PR                                        +44 (0)20 3405 0205
 Financial PR and IR
 David Ison/ Kieran Breheny/Pippa Crabtree

 

Notes to editors

Trackwise is a UK-based, King's Award winning, 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 harnesses 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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