Trackwise Designs (LON: TWD) share price plunged Wednesday after it announced heavily discounted fundraising plans to raise £5.15 million in total.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The company's chief executive Philip Johnston told investors in a statement in the release that it is a “matter of deep regret” that the manufacturer of specialist products using printed circuit technology has found itself “forced to come to the market on these terms.”
Trackwise shares are currently down 88%.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
“We very much appreciate the support shown by existing investors and welcome new shareholders to Trackwise. We look forward to commencing production at Stonehouse for our EV OEM customer, and continue to work hard to convert our IHT sales pipeline into new production contracts,” Johnston added.
The company warned in September that additional funding would be required due to lower production volumes.
Trackwise announced a proposed conditional placing to raise gross proceeds of £3.65 million and an open offer to qualifying shareholders to raise £1.5 million. Trackwise will also issue warrants to subscribers in the placing, subscription, and open offer. The Warrants are exercisable at a price of 6p per share during the three-year exercise period.
Trackwise said the funds raised will give it an expected cash runway through to the start of production of the New Commercial Order, and then once the production is completed, it will provide them with a further runway to August 2023. In addition, funds from the open offer will help provide the company with some contingency cover to deal with any potential production risks.
“The Stonehouse Site factory refurbishment and fit out is now largely complete. Equipment installation and commissioning is nearing completion. The company expects to commence volume production at the Stonehouse Site for the EV OEM customer in Q1 of 2023, with first cash receipts for production parts expected in early April 2023. Production of the New Commercial Order is planned to be complete by July 2023,” the company stated.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.