Saietta Group frees up funds ahead of light duty vehicle push
London, UK
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August 07, 2023 08:07 AM Eastern Daylight Time
Saietta Group PLC (AIM:SED) executive chairman Tony Gott and group CFO Steve Harrison speak to Thomas Warner from Proactive about two significant recent developments at the electric drivetrain (eDrive) solutions company.
Saietta recently announced changes to its agreement with auto component giants Consolidated Metco (ConMet) that mean Saietta will receive an "immediate cash injection of €3.3mln" and the removal of "around €2mln of cash burn..." in exchange for the assignment to ConMet of jointly-developed intellectual property, machinery and equipment related to the development of an in-wheel generator (IWG) and an in-wheel motor (IWM). Harrison says the money freed up will be put to use on the light-duty side of the business, where he sees excellent growth opportunities.
He also says he remains confident that Saietta will meet its stated aim of being EBITDA positive in the first calendar quarter of 2024. Gott goes on to highlight news from the week prior that Saietta has signed a new agreement with a commercial partner, described as “one of the largest OEMs in the Indian light-duty mobility market”, which sets up an opportunity to distribute some 60,000 EV drive chain units over a potential 5-year period.
The agreement covers an anticipated third line of electric vehicles with its existing Indian client, and, follows a previously announced client partnership, which was set up to support product development and industrialisation of electric vehicle (EV) drive systems and their associated electronics.
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