Last checked at 21 Jun 2010 16:18
21 June 2010
TRAKM8 HOLDINGS PLC
("Trakm8" or "the Company")
MANUFACTURING AGREEMENT
Trakm8 (AIM: TRAK), the designer and developer of GPRS based hardware and software for the vehicle placement and security market, is pleased to announce that its wholly owned subsidiary Trakm8 Limited has entered into a manufacturing agreement with Omitec Limited ("Omitec") for the production of Trakm8's new T8 vehicle telematics hardware platform (the "Agreement").
Omitec, based in Devizes, Wiltshire is a leading UK provider of automotive diagnostic products and services. Trakm8 is currently working in collaboration with Omitec on the Trusted Road Usage and Emissions Profiling project which is partly funded by the Technology Strategy Board. Omitec is a wholly owned subsidiary of Omitec Group Ltd.
Under the terms of the Agreement Omitec will supply the T8 hardware platform to Trakm8 Limited and it is expected that the initial value of the contract will be up to £730,000. The T8 is an exciting addition to the Trakm8 hardware product range. Trakm8 Limited will continue to supply its existing T6 vehicle telematics hardware platform.
John Watkins, Chief Executive Officer of Trakm8, is also a director of Omitec and a director and substantial shareholder (as defined in the AIM rules for Companies) of Omitec Group Ltd, and therefore the entering of the Agreement is deemed to be a related party transaction under the AIM Rules for Companies. Accordingly, the independent directors of the Company, being all of the Company's directors save for John Watkins, consider, having consulted with Arbuthnot Securities Limited, the Company's Nominated Adviser, that the terms of the Agreement are fair and reasonable insofar as the Company's shareholders are concerned. In providing its advice, Arbuthnot Securities Limited has taken into account the independent directors' commercial assessments.
For further information please contact:
Trakm8 Holdings PLC 01747 858 444
James Hedges, Finance Director
Tavistock Communications 020 7920 3150
Simon Hudson
Arbuthnot Securities Limited 020 7012 2000
Alasdair Younie / Richard Johnson