(Alliance News) - Trackwise Designs PLC said on Tuesday it will extend its cash runway to the end of June amid a contract delay.
The Tewkesbury, England-based manufacturer of products using printed circuit technology said the delay in the delivery of parts to an electric vehicle original equipment manufacturer is the liability of the EV OEM customer.
The delay is the result of the EV OEM customer redesigning the parts to meet revised requirements.
Trackwise noted that the delay caused by the EV OEM has meant that the planned increase in working capital associated with the start of production has been delayed, and therefore its previously announced cash runway of GBP4.0 million to the end of May has been extended to the end of June.
Trackwise also said its customer has until June 2 to complete the commercial order and "remedy the breach."
This relates to an agreement announced in October between Trackwise and its EV OEM customer for a fixed quantity of flexible printed circuit boards for delivery through to July.
Trackwise had expected to begin volume production in the first quarter of 2023, with first cash receipts for the parts in early April and production completed in July.
Shares were down 3.4% at 0.59 pence each in London on Tuesday midday.
By Sabrina Penty, Alliance News reporter
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