Trackwise Designs raises £11m at 200p to advance IHT manufacturing
has raised £11 million at a price of 200p in order to increase the group’s manufacturing capacity of its Improved Harness Technology (IHT) following its recently announced £38m manufacturing agreement with an electric vehicle (EV) maker.
The UK-based manufacturer is expecting a significant ramp up in production in FY21 following a multi-year £38m production order from an EV manufacturer, analysts at finnCap highlighted.
The provider of specialist products using printed circuit technology said the proceeds will also be used to support future anticipated IHT demand as well as a growing pipeline of IHT revenue opportunities, prioritising primary target markets of EV, Medical and Aerospace.
IHT uses a proprietary, patented process that Trackwise has developed to manufacture multilayer flexible printed circuits of unlimited length. The directors expect that one of iht’S primary uses will be to replace traditional wire harnesses in a variety of industries.
The proceeds will be used to fund a new additional IHT manufacturing facility in the UK, together with providing growth working capital while an Open Offer will raise up to a further c.£1m of additional growth working capital to further strengthen Trackwise’s balance sheet.
Shares in Trackwise Designs have soared over 140% in value since the beginning of September 2020 to open 15.07% lower this morning at 310p following the announcement.
"It has been a transformational 12 months for Trackwise, and the recent major agreement with an Electric Vehicle manufacturer demonstrates the significant traction our Improved Harness Technology™ is gaining in the market,” said Philip Johnston, Chief Executive of Trackwise.
"We are delighted by the support shown by new and existing investors, providing us with the means to deliver against our growing pipeline of revenue opportunities across our primary target markets of EV, Medical and Aerospace, thereby maximising our long-term growth."
In a morning research note, analysts at broker finnCap raised their target price to 400p from 220p. It said it recognises that Trackwise has “upside scope to forecasts as well as scope to announce further substantial new contract wins that are not currently in our forecasts.”
“The EV sector remains a significant growth opportunity for IHT. It also has three trials with potential major international customers in the medical devices market, with customer trials looking promising for use in catheters – a $37bn global market,” its analysts highlighted.
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