Shares of Trackwise Designs PLC (LON: TWD) today surged 30.4% after announcing that it had secured a significant discount on the purchase price of Stevenage Circuits.
The company, which designs printed circuit technology received a £657,000 on the purchase price, which will lower its purchase price to £1.8 million only.
The discount was based on the fact that Stevenage’s production facility needs repairs, which Trackwise will be responsible for once they acquire the firm.
However, the company warned investors that the discount would not have a material impact on its cash position given that the money would be invested in the repairs once the acquisition is completed.
Trackwise explained that: “The reduction reflects repairs and maintenance work that the company intends to undertake to property and plant and equipment that will improve the facilities and result in production efficiencies at Stevenage. There is now no deferred or contingent consideration payable in future.”
Trackwise Designs share price
Trackwise share price today surged 30.4% higher to trade at 150p having ended Thursday’s session trading at 115p.