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Trackwise Designs PLC on Wednesday proposed a placing and subscription of new shares to raise £3.7 million and provide cash flow for its production contract with an electric vehicle original engine manufacturer customer.
The specialist product manufacturer using printed circuit technology said it will issue 365.5 million new shares at 1.00 pence per share. Shares in Trackwise Designs were down 87% to 1.59p each in London on Wednesday morning.
Trackwise Designs intends to raise a further £1.5 million by issuing 150.0 million new shares in an open offer to existing shareholders at the price on the basis of one new share for each quarter of an existing share.
It also proposes to issue warrants to subscribers in the placing, subscription and open offer, exercisable at a price of 6.00p per share during the coming three-year period. Each warrant will be equivalent to two new shares issued to subscribers.
If all warrants were exercised, this would generate additional proceeds of up to £15.4 million for Trackwise Designs.
It said the placing proceeds will give it the necessary cash through to the start of a electric vehicle original equipment manufacturer customer order, which was announced in October.
Trackwise Designs expects to commence volume production for the EV OEM customer in the first quarter of 2023, with first cash receipts for production parts expected in early April 2023. Overall production is planned to complete by July 2023.
‘It is of course a matter of deep regret that we have found ourselves forced to come to the market on these terms. We very much appreciate the support shown by existing investors and welcome new shareholders to Trackwise,’ said Chief Executive Officer Philip Johnston.
Trackwise Designs said it is actively exploring longer term strategic investment partnerships with larger global businesses to support development and converting the pipeline of identified sales opportunities.
By Greg Rosenvinge, Alliance News reporter
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