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Trackwise Designs Plc LSE:TWD London Ordinary Share GB00BFYT9999 ORD 4P
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Technology Hardware & Equipment 2.9 -0.1 -0.3 - 53

Trackwise Designs PLC Fundraising and Open Offer

20/11/2020 7:00am

UK Regulatory (RNS & others)


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RNS Number : 9484F

Trackwise Designs PLC

20 November 2020

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN, IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, CANADA, JAPAN, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION. THIS ANNOUNCEMENT SHOULD BE READ IN ITS ENTIRETY. FURTHER DETAILS OF THE FUNDRAISING ARE SET OUT BELOW.

THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND SHALL NOT CONSTITUTE AN OFFER TO SELL OR ISSUE OR THE SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE FOR OR OTHERWISE ACQUIRE ANY NEW ORDINARY SHARES OF TRACKWISE DESIGNS PLC.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF THE MARKET ABUSE REGULATION NO. 596/2014 ("MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Terms not otherwise defined herein shall have the meanings given in the section entitled "Definitions" at the end of this Announcement.

TRACKWISE DESIGNS PLC

("Trackwise", the "Company" or the "Group")

Placing, Subscription and Open Offer

and

Notice of General Meeting

The Board of Trackwise Designs plc, a provider of specialist products using printed circuit technology, is pleased to announce that it has conditionally raised gross proceeds of GBP11 million by way of the issue of an aggregate of up to 5,500,000 New Ordinary Shares pursuant to a Placing of up to 5,490,000 New Ordinary Shares and a Subscription of 10,000 New Ordinary Shares at an Issue Price of 200 pence per New Ordinary Share.

In addition, the Company proposes to raise up to a further approximately GBP1 million by the issue of a further up to 502,582 New Ordinary Shares pursuant to an Open Offer to Qualifying Shareholders, also at the Issue Price (the Placing, Subscription and Open Offer, together the "Fundraising").

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

Highlights:

-- Oversubscribed Placing and Subscription with new and existing institutional and other investors to raise gross proceeds of GBP11 million.

-- Requirement for increased IHT (Improved Harness Technology(TM) ) manufacturing capacity due to the recently announced EV OEM up to GBP38m manufacturing agreement, future anticipated IHT demand and emerging Medical and Aerospace market opportunities.

-- Growing pipeline of IHT revenue opportunities, prioritising primary target markets of EV, Medical and Aerospace.

-- Placing and Subscription proceeds will fund a new additional IHT manufacturing facility in the UK, together with providing growth working capital.

-- Issue Price of 200 pence represents a discount of approximately 7.9 per cent. to the volume weighted average price of 217.17 pence per Ordinary Share for the period of 18 September 2020 to 19 November 2020, being the date on which the Company recently announced a new manufacturing agreement with an EV OEM through to the Business Day prior to the announcement of the Fundraising.

-- Open Offer providing an opportunity for Qualifying Shareholders, raising gross proceeds of up to a further approximately GBP1 million of additional growth working capital, further strengthening the Company's balance sheet. The Open Offer is being made to provide an opportunity for participation in the Fundraise by the Company's existing Shareholder base, and those existing Shareholders taking part in the Placing and Subscription will not be entitled to take part in the Open Offer.

Philip Johnston, CEO of Trackwise, commented: "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(TM) is gaining in the market.

"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."

Circular and General Meeting

A Circular to Shareholders in respect of the Placing, Subscription and the Open Offer is expected to be posted to shareholders later today giving notice of a General Meeting of the Company. The General Meeting will be run as a closed meeting and only essential personnel from the Company will attend. The meeting will be held on 9 December 2020 at 10:00 a.m. at the offices of the Trackwise at 1 Ashvale, Alexandra Way, Tewkesbury GL20 8N. A copy of the Circular will later today be available on the Company's website www.trackwise.co.uk . The Directors consider the Resolutions to be set out in the Circular and Notice to be in the best interests of the Company and the Shareholders as a whole. The Directors who hold Ordinary Shares intend to vote in favour of the Resolutions in respect of their shareholdings, representing in aggregate approximately 31.09 per cent. of the Company's current issued share capital as at the date of this announcement.

Further information on the Fundraising, including the Open Offer, is set out below. This announcement should be read in its entirety.

Enquiries:

 
 Trackwise Designs plc                     +44(0)16 8429 9930 
 Philip Johnston, CEO                      www.trackwise.co.uk 
 Mark Hodgkins, CFO 
 
 finnCap Ltd                               +44(0)20 7220 0500 
 NOMAD and Broker 
 Ed Frisby / Matthew Radley - Corporate 
  Finance 
  Andrew Burdis / Tim Harper - ECM 
 
 Alma PR                                   +44(0)20 3405 0205 
 Financial PR and IR 
 Caroline Forde / Josh Royston / David 
  Ison 
 

Notes to editors

Trackwise is a UK-based manufacturer of specialist products using printed circuit technology.

The full suite includes: Improved Harness Technology(TM) ("IHT") and Advanced PCBs - Microwave and Radio Frequency ("RF"), Short Flex, Flex Rigid and Rigid Multilayer products.

IHT uses a proprietary, patented process that Trackwise has developed to manufacture multilayer flexible printed circuits of unlimited length. While the technology has many applications, the directors expect that one of its primary uses will be to replace traditional wire harness in a variety of industries.

The Company manufactures on two sites, located in Tewkesbury and Stevenage (following the acquisition of Stevenage Circuits Ltd in April 2020). It serves customers in Europe and North America.

Trackwise Designs plc was admitted to trading on AIM in 2018 with the ticker TWD. For additional information please visit www.trackwise.co.uk

No statement in this announcement is intended to be a profit forecast or estimate and no statement in this announcement should be interpreted to mean that earnings per share of the Company for the current or future financial years would necessarily match or exceed the historical published earnings per share of the Company.

The following text has been taken from the Circular to be sent to Shareholders.

LETTER FROM THE CHAIRMAN

   1.    Introduction 

The Company announced on 20 November 2020 that it had conditionally raised GBP11 million (before expenses) by the issue of up to 5,490,000 New Ordinary Shares pursuant to the Placing and the Subscription of a total of up to 10,000 New Ordinary Shares at 200 pence per share (the "Issue Price"). In addition the Company announced an Open Offer providing an opportunity for Qualifying Shareholders, to raise gross proceeds of approximately GBP1 million by the issue of up to 502,582 New Ordinary Shares also at the Issue Price. The Issue Price represents a discount of approximately 7.9 per cent. to the volume weighted average price of 217.17 pence per Ordinary Share for the period of 18 September 2020 to 19 November 2020, being the period the Company recently announced a new manufacturing agreement with an electric vehicle OEM through to the Business Day prior to the announcement of the Fundraising.

The Fundraising is conditional on, inter alia, the passing of the Resolutions by the Shareholders at the General Meeting. If the Resolutions are passed, the New Ordinary Shares are expected to be allotted immediately after the General Meeting, conditional on Admission, which is expected to occur at 8.00 a.m. on 10 December 2020. Should Shareholder approval not be obtained at the General Meeting, neither the Placing, the Subscription nor the Open Offer will proceed. Neither the Placing, the Subscription nor the Open Offer has been underwritten.

The purpose of this letter is to outline the reasons for the Fundraising, details of the Open Offer and explain why the Board considers the Resolutions to be in the best interests of the Company and Shareholders as a whole, and why the Directors unanimously recommend that you vote in favour of the Resolutions, as they intend to in respect of the Ordinary Shares held by them, which represent in aggregate approximately 31.09 per cent. of the Existing Ordinary Shares.

   2.    Background to and reasons for the Fundraising 

The business was acquired by the Company which was previously called Bremhold Limited, and was incorporated in 2000, but the Trackwise business has been trading since 1989 and was historically a provider of large antennae for the mobile phone industry. It began the development for the manufacture of unlimited length multiple layer flexible PCBs ("IHT") in 2012; the process patent for which was granted in 2014.

Patents have since been granted in the United Kingdom, the United States of America, Canada, the European Union and China with an impending grant expected from Brazil.

IHT is a disruptive process technology that enables the replacement of wire and wire harness in a wide variety of applications where wire is used. Its key benefits, which are built on the longstanding and well known benefits of flexible PCBs of short length, is that it can reduce weight by up to 75 per cent. when replacing incumbent technology, improve precision, reliability and performance and the ability to support distributed electronics or 'smart harness'. IHT is positioned to satisfy the demand for lighter, smaller and more functional connectivity across a range of applications in the electric vehicles ("EV"), aerospace, medical devices, defence, industrial and telecoms industries.

The Company financed the development of the technology using the retained profits of its traditional antenna business as well as debt finance during the period up to 2018. The Company's shares became quoted on the London Stock Exchange AIM market by way of IPO, raising GBP5.5 million of new money.

The funding provided at the time of IPO enabled the development of the capacity and capability to manufacture IHT and since then the Company has enabled the roll-to-roll manufacture of IHT such that it is now in a position to begin larger scale production of IHT for a range of customers.

In September 2020 the Company was able to announce the culmination of 2 years development work with an EV OEM for the supply of flexible battery harnesses made using the technology and know-how developed by the business for its IHT product. This contract has the potential to generate revenues of up to GBP38 million over the next 3 financial years. The contract includes material compensation payments from the EV OEM if minimum order volumes are not placed. An initial GBP0.6 million order was announced in February 2020 and the contract has the potential for revenue of up to GBP5 million in 2021.

Earlier in 2020, the Company had acquired Stevenage Circuits Limited (CRN: 01059497) to enable it to transfer its traditional antenna business to Stevenage thereby: retaining the antenna component of the business, increasing the solid base of the advanced printed circuit board (APCB) business, whilst at the same time freeing up production capacity at its principal IHT site in Tewkesbury to meet the first wave of the series production for the EV OEM.

However, it is clear that the demand from the EV OEM will in time outstrip the capacity that the Company has in Tewkesbury and with growing interest from medical appliance customers, aerospace and other industrial users, this necessitates further production capacity to be enabled to meet the demand foreseen.

The Company has identified a new leasehold site near Gloucester, UK for the purposes of meeting this additional demand and the Fundraising has been sought to meet not only the cost of the laying down of the factory: plant and machinery capital expenditure and fit out costs, but also further growth working capital. The Company sets out herein, an Open Offer for Qualifying Shareholders to subscribe for Ordinary Shares at the Issue Price to enable non-institutional shareholders to participate as they may wish.

   3.    Use of proceeds 

The Company is proposing to raise gross proceeds of approximately GBP12 million from the Fundraising. The net proceeds (after deducting the costs and expenses of the Fundraising), along with the Company's existing cash resources are intended to be used to increase IHT manufacturing capacity, triggered by the recent EV contract win, future anticipated IHT demand and emerging Medical and Aerospace market opportunities. In addition, proceeds of the Fundraising will provide additional growth working capital.

   4.    Information on the Fundraising and terms of the Placing Agreement 

The Company proposes to raise approximately GBP11 million (before expenses) through the issue of the Placing Shares at the Issue Price. The Issue Price represents a discount of approximately 7.9 per cent. to the volume weighted average price of 217.17 pence per Ordinary Share for the period of 18 September 2020 to 19 November 2020, being the period the Company recently announced a new manufacturing agreement with an EV OEM through to the Business Day prior to the announcement of the Fundraising. The Issue Price represents a discount of 45.2 per cent. to the closing mid-market price of an Ordinary Share of 365 pence on 19 November 2020, being the Business Day prior to the announcement of the Fundraising.

Pursuant to the terms of the Placing Agreement finnCap as agent and broker for the Company, has conditionally agreed to use its reasonable endeavours to place the Placing Shares with certain institutional and other investors. The Placing Agreement is conditional upon, amongst other things, the Resolutions being duly passed at the General Meeting and Admission becoming effective on or before 8.00 a.m. on 10 December 2020 (or such later time and/or date as the Company and finnCap may agree, but in any event by no later than 8.00 a.m. on 8 January 2021).

The Placing Agreement contains warranties from the Company in favour of finnCap in relation to, amongst other things, the accuracy of the information in this document and other matters relating to the Company and its business. In addition, the Company has agreed to indemnify finnCap and their affiliates in relation to certain liabilities they may incur in respect of the Placing. finnCap can terminate the Placing Agreement at any time prior to Admission in certain circumstances, including in the event of a material breach of the warranties given in the Placing Agreement, the failure of the Company to comply with its obligations under the Placing Agreement, the occurrence of a force majeure event which in finnCap's opinion make it inadvisable or impractical to proceed with the Placing, or a material adverse change affecting the financial, operational or legal condition of the Company. If this right is exercised the Placing will not proceed. The Placing is not being underwritten by finnCap. The Company has agreed to pay certain fees and commissions to finnCap in respect of the Fundraising.

Application will be made for the Placing Shares to be admitted to trading on AIM and it is expected that, subject to the passing of the Resolutions, Admission will become effective and that dealings in the Placing Shares will commence at 8.00 a.m. on 10 December 2020. The Placing Shares will, if and when issued, rank pari passu in all respects with the Existing Ordinary Shares including the right to receive dividends and other distributions declared following Admission.

   5.    Effect of the Placing, Subscription and Open Offer 

Application will be made for the Placing Shares, the Subscription Shares and the Open Offer Shares to be admitted to trading on AIM. Conditional upon, inter alia, the passing of the Resolutions, it is expected that Admission will occur on or around 8.00 a.m. on 10 December 2020.

Following Admission, the Company's Enlarged Share Capital will comprise 28,116,204 Ordinary Shares, each with voting rights in the Company. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in the interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

The issue of the Placing Shares is conditional, amongst other things, on the passing of the Resolutions at the General Meeting and admission of the Placing Shares to trading on AIM.

   6.    Current trading and financial position 

The Company has a 31 December financial year end and acquired Stevenage Circuits Limited ("SCL") on 1 April 2020. For the ten months to 31 October 2020 the Company (including a seven month contribution from SCL) has achieved:

-- Total revenue of approximately GBP4.84 million (unaudited) (year to 31 Dec 2019: GBP2.91 million)

   --      IHT revenue of GBP0.45 million (unaudited) (year to 31 Dec 2019: GBP0.94 million) 

-- Adjusted* EBITDA of GBP0.60 million (unaudited earnings before interest, tax, depreciation and amortisation) (year to 31 Dec 2019: GBP0.57 million)

-- Adjusted* loss before tax of GBP0.37 million (unaudited) (year to 31 Dec 2019: profit of GBP0.23 million)

-- Reported profit after tax of GBP0.97 million (unaudited, which benefits from the GBP1.545 million negative goodwill (credit) arising on the acquisition of SCL) (year to 31 Dec 2019: loss of GBP0.05 million)

*Before share based payments, acquisition expenses, and excluding the negative goodwill (credit) arising on the acquisition of SCL. 2019 also excluded GBP28k severance and GBP57k Brexit protection exchange loss

Net debt (cash and cash equivalents less plant and machinery asset financing debt; excludes IFRS16 lease debt) at 31 October 2020 was approximately GBP0.11 million (unaudited). Whilst the Company's order book and opportunities for IHT are at record levels, sales of IHT & Advanced PCBs products have been impacted in 2020 by the ongoing COVID-19 pandemic. The Company has an IHT & Advanced PCBs orderbook of approximately GBP2.24 million (unaudited). The Company's 2021 financial year is expected to see an uplift in revenues benefiting from the EV OEM contract announced in September 2020 referred to above which is expected to see sales to this customer reach full rate in the fourth quarter of 2021, and benefiting from the first full year of ownership of Stevenage Circuits Limited.

   7.    Director participation in the Placing, Subscription and Open Offer 

The following Directors have agreed to subscribe for an aggregate of 20,000 Placing Shares and 5,000 Subscription Shares as set out below.

 
 Director          Board Position    Amount       Number         Number             Holding of         % of Enlarged 
                                      (GBP)        of Placing     of Subscription    Ordinary Shares    Issued Share 
                                                   Shares         Shares             post-Admission*    Capital* 
                                                   at the         at the 
                                                   Issue Price    Issue Price 
 Mark Hodgkins     CFO               GBP25,000    12,500         -                  148,869            0.53% 
                   Non-Executive 
 Susan McErlain     Director         GBP15,000    7,500          -                  7,500              0.03% 
 Charles           Non-Executive 
  Cattaneo          Director         GBP10,000    -              5,000              15,000             0.05% 
 

* Assuming the Open Offer is fully taken up.

   8.    Related Party Transaction 

The Directors' aggregate participation in the Fundraising, as set out above, constitutes a related party transaction pursuant to Rule 13 of the AIM Rules. The Company's independent directors (being Ian Griffiths and Philip Johnston) consider, having consulted with the Company's nominated adviser, finnCap, that the terms upon which the Directors are participating in the Fundraising are fair and reasonable insofar as the Company's shareholders are concerned.

   9.    General Meeting 

The Directors do not currently have sufficient authority to allot in full the New Ordinary Shares. Accordingly, the Board is seeking the approval of Shareholders to allot the New Ordinary Shares at the General Meeting, together with approval to disapply pre-emption rights.

Shareholders should be aware that if any of the Resolutions are not passed, the Fundraising will not proceed. A notice convening the General Meeting, which is to be held at 10.00 a.m. on 9 December 2020 at the offices of the Company at 1 Ashvale, Alexandra Way, Tewkesbury, Gloucestershire GL20 8NB, is set out at the end of this document.

The General Meeting will be run as a closed meeting and only essential personnel from the Company will attend.

A Form of Proxy for use by the Shareholders in connection with the General Meeting is also enclosed. At the General Meeting, the following Resolutions will be proposed:

Resolution 1 is an ordinary resolution and requires a simple majority of those voting to vote in favour of that Resolution 1. Resolution 2 is a special resolution and will require not less than 75 per cent. of those voting in person or on a poll by proxy to vote in favour of this Resolution 2.

The authorities to be granted pursuant to Resolution 1 and Resolution 2 shall expire on the date which is 15 months from the date of the Resolutions or if earlier the conclusion of the next annual general meeting of the Company (unless renewed, varied or revoked by the Company prior to or on that date).

10. Open Offer

In order to provide Shareholders with an opportunity to participate, the Company is inviting all Qualifying Shareholders to subscribe at the Issue Price for an aggregate of 502,582 Open Offer Shares at the Issue Price. This allows those Shareholders to participate on a pre-emptive basis whilst providing additional capital for the Company. Any Placees who are existing Shareholders of the Company will not be entitled to take part in the Open Offer.

Qualifying Shareholders are being given the opportunity to apply for additional Open Offer Shares in excess of their pro rata entitlements to the extent that other Qualifying Shareholders do not take their entitlements up in full. The Open Offer Shares have not been placed subject to clawback and have not been underwritten.

The latest time for application under the Open Offer to be received is be 11.00 a.m. on 8 December 2020. The procedure for application and payment depends on whether, at the time at which application and payment is made, you have an Application Form in respect of your Open Offer Entitlements or have Open Offer Entitlements credited to your stock account in CREST in respect of such entitlement. Further details of the Open Offer are set out in Part II of this document.

11. Actions to be taken

Please check that you have received the following with this document:

   --      a Form of Proxy for use in respect of the General Meeting; and 

-- a reply-paid envelope for use in connection with the return of the Form of Proxy (in the UK only).

In light of the prevailing guidance from the UK Government in relation to the Covid-19 outbreak and specifically the restrictions on unnecessary travel and large gatherings, the General Meeting will be convened with the minimum quorum of Shareholders (which will be facilitated by the Company's management) in order to conduct the business of the meeting. The General Meeting will thus be a closed meeting with Shareholders not permitted to attend in person. Instead of attending the General Meeting, we urge Shareholders to vote by proxy on the Resolutions as early as possible. Given the restrictions on attendance, the Board strongly recommends that Shareholders appoint the Chair of the General Meeting as their proxy (and not any named individual as they will not be able to attend the meeting). In the interests of safety, any proxy who is not the Chair of the General Meeting or any Shareholder attending the General Meeting in person (other than those required for a quorum to exist) will be denied access to the General Meeting. The Company will continue to closely monitor the developing impact of Covid-19, including the latest UK Government guidance. Should it become appropriate to revise the current arrangements for the General Meeting, any such changes will be notified to Shareholders through our website at www.trackwisedesigns.co.uk and, where appropriate, by announcement made by the Company to a Regulatory Information Service.

You are strongly encouraged to complete, sign and return your Form of Proxy in accordance with the instructions printed thereon as soon as possible, but in any event so as to be received, by post or, during normal business hours only, by hand, by no later than 10.00 a.m. on 7 December 2020 (or, in the case of an adjournment of the General Meeting, not later than 48 hours before the time fixed for the holding of the adjourned meeting).

If you hold your shares in the Company in uncertificated form (that is, in CREST) you may vote using the CREST Proxy Voting service in accordance with the procedures set out in the CREST Manual (please also refer to the accompanying notes to the Notice of the General Meeting set out at the end of this document). Proxies submitted via CREST must be received by the Company's agent (Equiniti) by no later than 11.00 a.m. on 7 December 2020 (or, in the case of an adjournment, not later than 48 hours before the time fixed for the holding of the adjourned meeting).

Appointing a proxy in accordance with the instructions set out above will enable your vote to be counted at the General Meeting. The action to be taken by Qualifying Shareholders in connection with the Open Offer is set out in Part II of this document.

If you are in any doubt as to what action you should take, you should immediately seek your own personal financial advice from your stockbroker, bank manager, solicitor, accountant or other independent professional adviser duly authorised under the FSMA if you are resident in the United Kingdom or, if not, from another appropriately authorised independent financial adviser.

12. Recommendation

Shareholders should be aware that if any of the Resolutions are not passed, the Fundraising will not proceed.

The Directors believe that the Resolutions to be proposed at the General Meeting are in the best interests of the Company and Shareholders as a whole and unanimously recommend that Shareholders vote in favour of the Resolutions.

The Directors intend to vote in favour of the Resolutions in respect of, in aggregate, 6,874,049 Existing Ordinary Shares, representing approximately 31.09 per cent. of the Existing Ordinary Shares.

Yours faithfully

Ian Griffiths

Chairman

EXPECTED TIMETABLE OF PRINCIPAL EVENTS

 
 Record date for entitlements under the              close of business on 
  Open Offer                                             18 November 2020 
 Publication of this document, Form of                   20 November 2020 
  Proxy and Application Form 
 Ex-entitlement date for Open Offer                 8 a.m. on 20 November 
                                                                     2020 
 Open Offer Entitlements and Excess CREST           8 a.m. on 23 November 
  Open Offer Entitlements credited to stock                          2020 
  accounts of Qualifying CREST Shareholders 
 Recommended latest time for withdrawal           4:30 p.m. on 2 December 
  of Open Offer Entitlements from CREST                              2020 
 Latest time for depositing Open Offer            3:00 p.m. on 3 December 
  in to CREST                                                        2020 
 Latest time and date for splitting of            3:00 p.m. on 4 December 
  Application Forms (to satisfy bona fide                            2020 
  market claims only) 
 Latest time and date for receipt of completed   11:00 a.m. on 8 December 
  Application Forms and payment in full                              2020 
  under the Open Offer 
 CREST accounts credited in respect of                 On or soon after 8 
  Placing Shares, Subscription Shares and             a.m. on 10 December 
  Open Offer Shares in uncertificated form                           2020 
 Latest time and date for receipt of Forms       10:00 a.m. on 7 December 
  of Proxy                                                           2020 
 General Meeting                                 10:00 a.m. on 9 December 
                                                                     2020 
 Announcement of the results of the General               9 December 2020 
  Meeting and Open Offer 
 Admission and commencement of dealings          8:00 a.m. on 10 December 
  in the Placing Shares, Subscription Shares                         2020 
  and the Open Offer Shares on AIM 
 Dispatch of definitive share certificates               21 December 2020 
  for Placing Shares, Subscription Shares 
  and Open Offer Shares in certificated 
  form 
 

ISSUE STATISTICS

 
 Number of Existing Ordinary Shares                        22,113,622 
 Issue Price 
                                                            200 pence 
 Number of Placing Shares                                   5,490,000 
 Number of Subscription Shares                                 10,000 
 Number of Open Offer Shares*                                 502,582 
 Proceeds of the Fundraising (before expenses)*       GBP12.0 million 
 Enlarged Share Capital following Admission(1) 
  *                                                        28,116,204 
 Percentage of Enlarged Share Capital represented     21.35 per cent. 
  by the Placing Shares, the Subscription Shares 
  and the Open Offer Shares* 
 Market Capitalisation of the Company at the         GBP56.23 million 
  Issue Price upon Admission* 
 

Notes:

(1) Assuming full issuance of the Placing Shares, Subscription Shares and Open Offer Shares

*Assuming the Open Offer is taken up in full

DEFINITIONS

The following definitions apply throughout this announcement unless the context requires otherwise:

 
 "Admission"                  the admission of the Placing Shares and 
                               the Open Offer Shares to trading on AIM 
                               becoming effective in accordance with 
                               the AIM Rules 
 "AIM"                        AIM, a market operated by the London Stock 
                               Exchange 
 "AIM Rules"                  the AIM Rules for Companies published 
                               by the London Stock Exchange from time 
                               to time 
 "Application Form"           the personalised application form to be 
                               posted to Qualifying Shareholders for 
                               use in connection with the Open Offer 
 "Board" or "Directors"       the directors of the Company whose names 
                               are set out on page 6 of this document 
 "Business Day"               any day on which banks are usually open 
                               in England and Wales for the transaction 
                               of sterling business, other than a Saturday, 
                               Sunday or public holiday 
 "certificated" or            a share or other security not held in 
  "in certificated form"       uncertificated form (that is, not in CREST) 
 "Chairman"                   the chairman of the Board 
 "Company" or "Trackwise"     Trackwise Designs plc, a company incorporated 
                               in England and Wales with registered number 
                               03959572 
 "CREST"                      a relevant system (as defined in the CREST 
                               Regulations) in respect of which Euroclear 
                               is the Operator (as defined in the CREST 
                               Regulations) 
 "CREST Manual"               the CREST Manual referred to in agreements 
                               entered into by Euroclear and available 
                               at www.euroclear.com 
 "CREST member"               a person who has been admitted to CREST 
                               as a system-member (as defined in the 
                               CREST Regulations) 
 "CREST member account        the identification code or number attached 
  ID"                          to a member account in CREST 
 "CREST participant"          a person who is, in relation to CREST, 
                               a system-participant (as defined in the 
                               CREST Regulations) 
 "CREST participant           shall have the meaning given in the CREST 
  ID"                          Manual 
 "CREST payment"              shall have the meaning given in the CREST 
                               Manual 
 "CREST Regulations"          the Uncertificated Securities Regulations 
                               2001 (SI 2001/3755) as amended from time 
                               to time 
 "CREST sponsor"              a CREST participant admitted to CREST 
                               as a CREST sponsor 
 "CREST sponsored member"     a CREST member admitted to CREST as a 
                               CREST sponsored member 
 "Enlarged Share Capital"     the issued share capital of the Company 
                               immediately after Admission as enlarged 
                               by the issue and allotment of the Placing 
                               Shares and the Open Offer Shares 
 "Excess Application          the arrangement under which Qualifying 
  Facility"                    Shareholders may apply for any number 
                               of Open Offer Shares in excess of their 
                               own Open Offer Entitlement 
 "Excess CREST Open           in respect of each Qualifying Shareholder 
  Offer Entitlement"           the entitlement (in addition to their 
                               own Open Offer Entitlement) to apply for 
                               Open Offer Shares pursuant to the Excess 
                               Application Facility 
 "Existing Ordinary           the issued share capital of the Company 
  Shares"                      as at the date of this document, being 
                               22,113,622 Ordinary Shares 
 "Euroclear"                  Euroclear UK & Ireland Limited 
 "Financial Conduct           the Financial Conduct Authority (and its 
  Authority" or "FCA"          predecessor, the Financial Services Authority) 
                               in its capacity as the competent authority 
                               for the purposes of Part VI of FSMA 
 "Form of Proxy"              the enclosed form of proxy for use by 
                               Shareholders in connection with the General 
                               Meeting 
 "FSMA"                       the Financial Services and Markets Act 
                               2000 (as amended) 
 "Fundraising"                the Placing, the Subscription and the 
                               Open Offer 
 "General Meeting"            the general meeting of the Company to 
                               be held at 10:00 a.m. on 9 December 2020 
                               (or any reconvened meeting following any 
                               adjournment of the general meeting), notice 
                               of which is set out at the end of this 
                               document 
 "IHT"                        Improved Harness Technology 
 "Issue Price"                200 pence per New Ordinary Share 
 "London Stock Exchange"      London Stock Exchange plc 
 "Money Laundering            the money laundering and terrorist financing 
  Regulations"                 provisions of the Criminal Justice Act 
                               1993, the Terrorism Act 2000, the Proceeds 
                               of Crime Act 2002, the Terrorism Act 2006 
                               and the Money Laundering Regulations 2007, 
                               the Money Laundering, Terrorist Financing 
                               and Transfer of Funds (Information on 
                               the Payer) Regulations 2017 
 "New Ordinary Shares"        the new Ordinary Shares to be issued by 
                               the Company pursuant to the Fundraising 
 "Notice" or "Notice          the notice of the General Meeting set 
  of General Meeting"          out at the end of this document 
 "Open Offer"                 the offer to Qualifying Shareholders, 
                               being an invitation to apply for Open 
                               Offer Shares on the terms and conditions 
                               set out in this document and, where applicable, 
                               the Application Form 
 "Open Offer Entitlement"     an entitlement of a Qualifying Shareholder 
                               pursuant to the Open Offer to apply for 
                               1 Open Offer Shares for every 44 Existing 
                               Ordinary Shares held by them at the Record 
                               Date 
 "Open Offer Shares"          the 502,582 New Ordinary Shares which 
                               are the subject of the Open Offer 
 "Ordinary Shares"            ordinary shares of 4 pence each in the 
                               share capital of the Company 
 "Overseas Shareholders"      shareholders who are resident in or a 
                               citizen of a country outside the United 
                               Kingdom 
 "Placees"                    subscribers for the Placing Shares 
 "Placing"                    the conditional placing by finnCap, as 
                               agent of and on behalf of the Company, 
                               of the Placing Shares on behalf of the 
                               Company on the terms and subject to the 
                               conditions contained in the Placing Agreement 
 "Placing Agreement"          the conditional placing agreement dated 
                               20 November 2020 between the Company and 
                               finnCap relating to the Placing 
 "Placing Shares"             the New Ordinary Shares to be issued to 
                               Placees pursuant to the Placing 
 "Proposals"                  the Placing and the Open Offer and other 
                               matters contained in this document 
 "Prospectus Rules"           the rules made by the FCA under Part VI 
                               of FSMA in relation to offers of transferable 
                               securities to the public and admission 
                               of transferable securities to trading 
                               on a regulated market 
 "Record Date"                close of business on 18 November 2020 
 "Registrar " or "Receiving   Equiniti Limited, registrars to the Company 
  Agents" 
 "Regulatory Information      has the meaning given to it in the AIM 
  Service"                     Rules 
 "Resolutions"                the resolutions to be proposed at the 
                               General Meeting, as set out in the Notice 
                               of General Meeting 
 "Restricted Jurisdiction"    United States of America, Canada, Australia, 
                               Japan, New Zealand and the Republic of 
                               South Africa and any other jurisdiction 
                               where the extension or availability of 
                               the Fundraising would breach any applicable 
                               law 
 "Shareholders"               holders of Ordinary Shares 
 "Subscribers"                the subscribers for the Subscription Shares 
                               pursuant to the Subscription 
 "Subscription"               the subscription of 10,000 New Ordinary 
                               Shares by the Subscribers pursuant to 
                               the Subscription Letters 
 "Subscription Letters"       the conditional subscription letters dated 
                               20 November 2020 between the Company and 
                               the Subscribers in connection with the 
                               Subscription 
 "Subscription Shares"        the 10,000 New Ordinary Shares allotted 
                               and to be issued pursuant to the Subscription 
                               Letters and which are expected to be admitted 
                               to trading on AIM on Admission 
 "stock account"              an account within a member's account in 
                               CREST to which a holding of a particular 
                               share or other security in CREST is credited 
 "Qualifying CREST            Qualifying Shareholders holding Existing 
  Shareholders"                Ordinary Shares in uncertificated form 
                               via CREST 
 "Qualifying non-CREST        Qualifying Shareholders holding Existing 
  Shareholders"                Ordinary Shares in certificated form 
 "Qualifying Shareholders"    shareholders whose Ordinary Shares are 
                               on the register on the Record Date with 
                               the exception of Overseas Shareholders 
 "uncertificated"             recorded on the register of members of 
  or "in uncertificated        the Company as being held in uncertificated 
  form"                        form in CREST and title to which, by virtue 
                               of the CREST Regulations, may be transferred 
                               by means of CREST 
 "United Kingdom"             the United Kingdom of Great Britain and 
  or "UK"                      Northern Ireland 
 "UK Listing Authority"       the FCA acting in its capacity as the 
                               competent authority for the purposes of 
                               Part VI of FSMA 
 "United States" or           the United States of America 
  "US" 
 "GBP", "pounds sterling",    UK pounds sterling, the lawful currency 
  "penny" or "pence"           of the United Kingdom 
 

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END

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November 20, 2020 02:00 ET (07:00 GMT)

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