Business
Further investment into P.S.K Wind Technologies
Further investment into P.S.K Wind Technologies.
About this update from Mti Wireless Edge Ltd
[{"type":"text","content":"\n\n \n\n6 May 2025\n \n \nMTI Wireless Edge Ltd\n(\"MTI\" or the \"Group\")\n \nFurther investment into P.S.K Wind Technologies Ltd.\n \nMTI Wireless Edge Ltd (AIM: MWE), the technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, is pleased to announce that its wholly-owned subsidiary MTI Summit Electronics Ltd. (\"MTI Summit\") has increased its ownership of its subsidiary P.S.K Wind Technologies Ltd. (\"PSK\") via a new equity investment of NIS 600,000 (approximately US$170,000) (the \"Investment\"). Following the Investment, MTI Summit will own 60% of PSK.\nAs highlighted in MTI's final results for the year ended 31 December 2024, the Board believes that PSK has now resolved the issues it encountered in 2024 and has begun 2025 with a very healthy order backlog and a long pipeline of opportunities driven by Governments seeking to increase their investment in defence. This has been evidenced by the recent defence contract secured by PSK, worth approximately US$0.8m, which was announced on 28 April 2025. The Board believes that the outlook for PSK is strong and it is poised to return to growth in 2025.\nBackground to the Investment\nOn 4 January 2022, MTI announced that MTI Summit had acquired 51% of PSK (the \"Acquisition\"). In addition to the Acquisition, an earn out mechanism was in place under which further consideration could potentially be payable to the vendors of PSK (the \"Earn Out\") and that MTI Summit has an option to purchase and the vendors of PSK have an option to sell to MTI Summit the remaining 49% of PSK (the \"Option\") starting from 2027. The Earn Out has now lapsed and no further consideration is payable to the vendors of PSK. Following the Investment, the Option has been modified to reflect that the vendors' holding in PSK is now 40%. The remaining terms of the Option remain as set out in MTI's announcement of 4 January 2022.\nThe consideration for the Investment is to be funded out of MTI's existing cash resources.\nMTI's CEO, Moni Borovitz, commented: \"We are pleased to have completed this transaction which extends our ownership of PSK and reflects our view of the potential of the business which has been further enhanced by the global increase in defence spend. The outlook for PSK and the Group as a whole is positive, and ...