Trackwise Designs PLC (LON:TWD) said it has raised £11mln through an oversubscribed placing and subscription to increase the manufacturing capacity of its Improved Harness Technology (IHT) following a recently announced deal with an electric vehicle (EV) maker.
The AIM-listed firm, which specialises in printed circuit products, said it has raised the funds through a placing of 5.49mln new shares and a subscription of 10,000 new shares at a price of 200p each, a 45% discount to its closing price on Thursday.
READ: Trackwise Designs: Targeting three multi-billion-pound industries
The company has also proposed to raise a further £1mln through the issue of up to 502,582 new shares pursuant to an open offer to qualifying shareholders at the same price.
Trackwise said the proceeds will fund a new IHT manufacturing facility in the UK in response to the deal with the EV maker, which is worth up to £38mln, as well as what it said was future anticipated IHT demand and “emerging medical and aerospace market opportunities”.
"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 is gaining in the market”, Trackwise chief executive Philip Johnston said in a statement.
"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", he added.
In a note on Friday, analysts at house broker finnCap raised their target price to 400p from 220p, saying the company has "upside scope to forecasts as well as scope to announce further substantial new contract wins" once the additional capacity is in place.
Trackwise shares fell 12.6% to 319p in early trading on Friday.
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