38 MILL NOT8 Mar 2021 19:07
Trackwise Designs (AIM: TWD), a leading provider of specialist products using printed circuit technology, is pleased to announce that it has signed a three-year Product Manufacture and Supply Agreement (the "Agreement") with a UK manufacturer of electric vehicles ("EV OEM"), that has the potential to be worth up to £5.0 million in 2021, and with the expectation of increased revenues in 2022 and 2023.
The Agreement is for the supply of Trackwise's Improved Harness Technology™-enabled ("IHT") flexible printed circuit boards for use in high and low voltage circuits in the manufacturer's vehicle battery modules and battery packs, reducing part count and assembly time while saving on space and weight. The Agreement is Trackwise's first for full series production for its IHT products.
The Agreement includes annual volumes, and certain payments to Trackwise in the event of lower volumes. In the event all contracted volumes are achieved the Agreement would be worth, subject to annual pricing reviews, up to £38 million over the period to 31 December 2023. Whilst material payments to Trackwise will be due in the event of lower volumes, this potential up to £38 million total revenue value is not guaranteed in total as it is conditional on, inter alia, orders placed, supply, and annual pricing reviews. The Agreement can be terminated by either party after 31 December 2023.