14th Sep 2022 10:59
(Alliance News) - Trackwise Designs PLC on Wednesday said it is in discussions with its UK electric vehicle original equipment manufacturer customer to replace is original product manufacture & supply agreement with a new contractual pact.
Shares in the Tewkesbury, Gloucestershire-based printed circuit products maker were down 40% to 11.40 pence on Wednesday morning.
In August, the EV OEM said it expects lower production volumes in 2022 compared to previous estimates.
Trackwise explained that this has had a knock-on effect on the availability of its planned asset-backed debt funding for the remaining pieces of capital expenditure at its new Stonehouse facility and increases the company's short-term cash requirements.
Therefore, Trackwise has entered discussions with the EV OEM to agree a new contractual agreement, whereby the customer will provide an advance payment, which is backed by security, against future product deliveries.
Discussions are now "advanced", it added.
The company also said it is reviewing a number of options for additional funding with its advisers, as well as exploring longer term strategic investment partnerships to support development and conversion of its "very significant" pipeline of sales opportunities.
By Sophie Rose; [email protected]
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