Trackwise Designs PLC UK EV OEM Contract Update (6745Y)

TIDMTWD

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 
 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(TM) ("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.

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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May 09, 2023 02:00 ET (06:00 GMT)

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