Trackwise Designs PLC Acquires Stevenage Circuits Ltd

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The Board of Trackwise Designs plc, a provider of specialist products using printed circuit technology, is pleased to announce that it has conditionally acquired Stevenage Circuits Ltd ("SCL") for a total consideration of up to £2.457m (the "Acquisition").

The Board is also pleased to announce that it has conditionally raised approximately £5.87m by the issue of an aggregate of up to 7,341,250 new ordinary shares of 4 pence each (the "Ordinary Shares") pursuant to a placing (the "Placing") of up to 7,253,750 new Ordinary Shares (the "Placing Shares") at 80 pence per share (the "Placing Price") and by the issue of 87,500 new Ordinary Shares pursuant to a subscription (the "Subscription Shares") at the Placing Price (the "Subscription") (the Placing and Subscription, together the "Fundraising").

The Fundraising requires Shareholder Resolutions to be passed by the Company's Shareholders.

Highlights:

• Acquisition of SCL, a UK-based designer and manufacturer of short flex and rigid printed circuit boards, for a maximum consideration of £2.457m

• For the year ended 30 September 2019, SCL achieved revenue of £6.5m and adjusted EBITDA* of approximately £0.36m

• The Acquisition adds further manufacturing capacity to enable the demand-led ramp up of the Company's Improved Harness Technology ("IHT") production, as well as customers and technical, sales and operational expertise

• Fundraising conditionally raising gross proceeds of approximately £5.87m for the Company supported by existing and new institutional shareholders

• The proceeds of the Fundraising will support the acquisition of SCL, the proposed funding of additional capacity and capability and the provision of growth working capital to include the continued development of the Company's IP and know-how

• The Acquisition is expected to be immediately earnings enhancing, and strengthens the Company's cash generative revenue streams

*Excludes one-off profit on disposal of property and excludes benefit of release of an unrequired dormant subsidiary accrual

Philip Johnston, CEO of Trackwise, commented: "We are pleased by the significant support shown by existing and new investors. The acquisition of SCL extends our manufacturing capabilities, providing us with the capacity to deliver IHT series production, while diversifying our revenue streams and customer base. The SCL team brings additional depth to our technical, sales and operational expertise and we look forward to welcoming them to Trackwise.  

With a broader platform from which to capitalise on the growing market awareness of IHT and an expanded team and customer base, we look to the future with confidence."