Trackwise Designs announced that, further to the Company's announcements on 14 September and 30 September 2022, it has concluded its discussions to replace the Product Manufacture and Supply Agreement ("PMSA") for the supply of flexible printed circuit boards to its UK EV OEM customer (EV OEM) and has agreed a new contractual arrangement with its customer. The new agreement (New Commercial Order) has been entered into for a fixed quantity of flexible printed circuit boards which are due to be delivered through to July 2023. The New Commercial Order provides for a £3.99 million advanced payment in 2022, with the balance of the contract value satisfied by standard payments on delivery of the products.

The advanced payment will be secured by a charge over various manufacturing assets involved in the production of the circuit boards at the new production facility at Stonehouse, Gloucestershire. The charge will be released upon completion of the supply of the full contracted quantity. Completion of the new contract and release of the charge will conclude contractual arrangements between the two companies.

Any further supply of existing parts or development of new parts for the EV OEM, will be under new arrangements to be agreed with the EV OEM. As previously announced, the wider impact upon Trackwise of the lower production volumes for the EV OEM is that additional funding is required and Trackwise is reviewing a number of options for additional funding with its advisers and will provide further updates in due course. The orders under the New Commercial Order as detailed above are consistent with Trackwise's Base Case forecast as outlined in its interim results announcement of 30 September 2022.

In addition,Trackwiseis actively exploring longer term strategic investment partnerships in order to support development and conversion of the very significant pipeline of identified IHT sales opportunities, notably for EV battery cell connection systems (CCS) for UK and EU OEMs, with Trackwise as a Tier 1 or Tier 2 supplier, and also for other Medical and Aerospace sales opportunities.