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Trackwise Designs extends deal with EV manufacturer
By Josh White
Date: Tuesday 22 Jun 2021
LONDON (ShareCast) - (Sharecast News) - Printed circuit technology company Trackwise Designs announced an extension and amendment to its product manufacture and supply agreement with a UK-based manufacturer of electric vehicles, originally announced in September 2020.
The AIM-traded firm said that further to a change in the needs of the customer, the term of the agreement was extended to four years from three, with a "significant increase" in expected volumes and potential value.
First material revenues from the contract were now expected in the first half of 2022, rather than in 2021, however.
In the event all contracted volumes are achieved, the agreement would now be worth up to £54m over the period ending 31 December 2024, an aggregate increase of £16m over the original Agreement for up to £38m.
The company said that while material payments to Trackwise would be due in the event of lower volumes, the potential revenue value was not guaranteed in total as it was conditional on orders placed, supply, and annual pricing reviews.
It said the agreement could be terminated by either party after the end of 2024.
The agreement is for the supply of the company's 'Improved Harness Technology' (IHT) enabled flexible printed circuit boards for use in high and low voltage circuits in the manufacturer's vehicle battery modules and battery packs.
Trackwise said the technology reduces part-count and assembly time, while saving on space and weight.
"This agreement reaffirms the strength of our relationship with the customer and the importance they attach to our products, with significantly greater expected volumes and a considerably higher overall value anticipated over the lifetime of the agreement," said chief executive officer Philip Johnston.
"We are delighted with the decision which further validates our technology as being among the best available to the burgeoning electric vehicle industry."
At 1558 BST, shares in Trackwise Designs were down 13.72% at 195p.
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