TIDMTWD
RNS Number : 0993I
Trackwise Designs PLC
02 August 2023
2 August 2023
TRACKWISE DESIGNS PLC
("Trackwise", the "Company" or the "Group")
Appointment of Administrators
and
Resignation of Nominated Adviser
Since September 2022, the board of directors of Trackwise (the
"Board") has been exploring longer term strategic investment
partnerships in order to support development and conversion of the
pipeline of identified IHT sales opportunities, notably for EV
battery cell connection systems ("CCS") and also for other Medical
and Aerospace sales opportunities.
Following the 24 July 2023 announcement that Trackwise had
commenced a sale process (the "TWD Sale Process"), discussions with
respect to a sale of the Company or in relation to an equity or
other such fundraising transaction have not been successful.
Regrettably therefore, following the 25 July 2023 announcement
that the Company had resolved to file a notice of intention to
appoint administrators, the Board has now concluded that it is
required to take the necessary steps to preserve value for
creditors. Consequently, the Board has resolved to appoint Arvindar
Jit Singh and Raj Mittal, both of FRP Advisory Trading Limited, 2nd
Floor 170 Edmund Street, Birmingham B3 2HB, as Joint Administrators
(the "Joint Administrators") to Trackwise Designs plc. It is
anticipated that the Joint Administrators will be appointed by the
court during the course of today.
The likely outcome for creditors of the Company is currently
unknown and it is not expected that the appointment of the Joint
Administrators will enable there to be any return to the
shareholders of Trackwise.
Stevenage Circuits Ltd
This announcement does not affect Stevenage Circuits Ltd ("SCL")
which is not in administration. Further to the announcement of 3
May 2023 of the SCL Sale Process, initial offers have been received
and are being assessed.
Philip Johnston, CEO of Trackwise, commented:
"It is beyond words the disappointment that I feel in having to
make this announcement. So many colleagues - past and present,
customers, suppliers, collaborators and investors have worked
tirelessly, sacrificed so much, dug so deep, to develop Trackwise
and to deliver Improved Harness Technology(TM). I thank them all
for their support over many years and am so very sorry that all of
that has come to this. It is certainly not for the lack of
trying."
Andrew Lapping, Chair of Trackwise, commented:
"I am truly sorry that the strategy set out for Trackwise in
December has failed to produce the hoped for result.
Chris Pennison and I joined the Board in January in the
knowledge that the GBP4.8m fundraise only gave the Company a
limited cash runway and would therefore require positive commercial
progress in H1 2023. Our short-term strategy was dependent on
securing a Nomination from a Tier 1 for automotive OEM B, a project
that has been worked on for at least 12 months. A decision on this
was originally expected in Q1 or in April but in the event, a final
decision was only made in late July.
If we had won the Nomination, it would have allowed Trackwise to
seek to raise sufficient funds to take it to the start of
production and significant cashflow. Moreover, it would have
provided the Company with much needed verification, giving our
customer pipeline further confidence to trade with Trackwise.
Confirmation that we had lost out on the Nomination was a huge
disappointment for everyone. We had expended a huge amount of
effort to give us the best possible chance of success.
The result of not winning the Nomination, particularly after the
delay in the award decision, inevitably left our cash runway
severely depleted. After consultation, and with no obvious source
of new funding, there was simply no choice but to put the Company
up for sale and this action greatly increased creditor
pressure.
I want to assure all that we have explored all possible routes
to raising finance without success.
It is with personal regret that the strategy set out in December
has failed and I can only apologise for the end result."
Resignation of Nominated Adviser
finnCap Ltd has informed the Company of its intention to resign
as Nominated Adviser and Broker to Trackwise with immediate effect
of release of this announcement. Pursuant to AIM Rule 1, if a
replacement Nominated Adviser is not appointed within one month of
today's date, the admission of the Company's shares to trading on
AIM will be cancelled. The Company has no current intention of
appointing a replacement Nominated Adviser. Trading in the
Company's ordinary shares on AIM remains suspended.
Enquiries
Trackwise Designs plc +44 (0)1684 299 930
Philip Johnston, CEO www.trackwise.co.uk
Paul Cook, CFO
finnCap Ltd +44 (0)20 7220 0500
NOMAD and Broker
Ed Frisby/Fergus Sullivan - Corporate
Finance
Andrew Burdis/Barney Hayward -
ECM
Alma PR +44 (0)20 3405 0205
Financial PR and IR
David Ison/ Kieran Breheny/Pippa
Crabtree
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END
APPBBGDIIUGDGXD
(END) Dow Jones Newswires
August 02, 2023 09:00 ET (13:00 GMT)
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