Trackwise Designs has announced that, following announcements made by the company on September 14 and 30, 2022, it has concluded its discussions to replace the Product Supply and Manufacturing Agreement (“PMSA”) for the supply of flexible printed circuits to your UK EV OEM customer (EV OEM) and have agreed a new contractual agreement with your customer. The new agreement (New Commercial Order) has been concluded for a fixed number of flexible printed circuit boards to be delivered until July 2023. The New Commercial Order provides for an advance payment of £3.99 million in 2022, the balance of the value of the contract so satisfied by the standard payments the delivery of the products.
The prepayment will be secured by a charge on various manufacturing assets involved in the production of printed circuit boards at the new production facility in Stonehouse, Gloucestershire. The charge will be released upon completion of the supply of the entire contractual quantity. The completion of the new contract and the release of the charges will conclude the contractual agreements between the two companies.
Any other supply of existing parts or the development of new parts for the electric vehicle equipment manufacturer will be made pursuant to new agreements to be agreed with the electric vehicle equipment manufacturer. As previously announced, the broader impact on Trackwise of lower production volumes for the EV OEM is that additional financing is required and Trackwise is reviewing a number of options for additional financing with its advisors and will provide more information in due course. Orders under the new business order as detailed above are in line with Trackwise’s base case forecast as outlined in its September 30, 2022 interim results announcement.
In addition, Trackwise is actively exploring long-term strategic investment partnerships to support the development and conversion of IHT’s large portfolio of identified sales opportunities, including EV Battery Cell Connection Systems (CCS) for UK OEMs. and the EU, with Trackwise as a Tier 1 or Tier 2 supplier, and also for other aerospace and medical sales opportunities.
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