ROODMICROTEC secures major order representing approx. EUR 25 million over 10 years

Zwolle, 02 July 2015

 

RoodMicrotec N.V. has secured a significant multi-year supply chain order for the automotive industry, which will run 10 years. The expected sales will be between EUR 2.5 and 3 million per year. Preparations for this order are currently under way, and are anticipated to take approx. 9 months. As a result, the supply chain activities with the abovementioned volume of between EUR 2.5 and 3 million per year will start in the second quarter of 2016.

Our Stuttgart Automotive Competence Centre, based in the heartland of the industry, which provides customers with easy access to the expertise and knowledge required to support their product, has contributed significantly to winning this order.
After securing this order, our quote portfolio remains at least at the level stated in our press release of 8 January 2015, which put our quote portfolio at over EUR 10 million. It therefore remains high and contains significant potential for further key orders.

Strategy
RoodMicrotec's strategy focuses on growth in strongly growing markets, such as automotive, industrial/medical and IoT, in particular of supply chain activities, which include test engineering, failure & technology analysis, qualification & reliability and logistics services.

'As we have indicated before, the lead times of our orders are often longer than expected. Therefore, this order represents a milestone. Furthermore, it is an order in one of our growth markets. Clearly, RoodMicrotec is very pleased with the order. It has also proved the value of our Automotive Competence Centre', said RoodMicrotec CEO Philip Nijenhuis.

Financing
For this project and other expected projects, some initial investments and additional working capital are needed. Based on present estimates, a capital raising by means of a new issue of RoodMicrotec shares will be desirable. For this, an agreement has been concluded on 2 July 2015 with an investor to - as and when RoodMicrotec feels this is necessary - issue shares in monthly tranches of at least EUR 100,000 and at most EUR 200,000, up to a maximum of EUR 1,000,000. Up to and including 23 April 2018, RoodMicrotec has the option of extending this agreement up to a total of EUR 2 million if the order portfolio gives rise to this.