REG - Strip Tinning Hldgs - Admission to AIM and First Day of Dealings

Strip Tinning HoldingsAnnouncement

16/02/2022 07:00

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RNS Number : 7942B  Strip Tinning Holdings PLC  16 February 2022

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS
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JURISDICTION").

16 February 2022

Strip Tinning Holdings plc

("Strip Tinning" or the "Company")

Admission to Trading on AIM and First Day of Dealings

 

Strip Tinning (AIM: STG), a leading supplier of specialist connectors to the
automotive sector, is pleased to announce the admission of its entire issued
share capital, being 14,324,324 ordinary shares of 1 pence each ("Ordinary
Shares"), to trading on AIM, a market operated by the London Stock Exchange
("Admission").

Admission and dealings in the Ordinary Shares will commence at 8.00 a.m.
today, Wednesday 16 February 2022 under the ticker "STG". A further 813,045
Ordinary Shares, following the exercise of EMI options granted by the Company,
will be admitted to trading at 8.00 a.m. tomorrow, Thursday 17 February 2022
("Second Admission"). Following Second Admission, the Company will have a
total of 15,137,369 Ordinary Shares in issue.

The Company's AIM admission document (the "Admission Document") is available
to view on its website at www.striptinning.com (http://www.striptinning.com/)
.

 

IPO Highlights

·    In conjunction with Admission and Second Admission (together the
"Admissions"), £11.5 million of gross proceeds have been raised by way of a
placing of new and existing Ordinary Shares (the "Placing") at a price of 185
pence per Ordinary Share (the "Placing Price").

·    The Placing has raised gross proceeds of £8.0 million for the
Company and £3.5 million for certain selling shareholders who have sold
Ordinary Shares as part of the Placing, in each case at the Placing Price.

·    Upon Second Admission, the Company will have a market capitalisation
(at the Placing Price) of approximately £28.0 million and a free float of
40.8%.

·    The Directors believe the Placing and Admission will enable the
Company to accelerate its growth plans and underpin its early mover advantage
in the EV battery sector, further enhance its profile in the markets in which
it operates and assist with attracting, retaining and incentivising high
calibre employees via participation in the Company's Share Incentive Plan.

·    Singer Capital Markets Securities Limited acted as Sole Bookrunner
and Placing Agent and Singer Capital Markets Advisory LLP has been retained as
Nominated Adviser and Broker.

·    The ISIN of the Ordinary Shares is GB00BMHN9M05, the SEDOL of the
Ordinary Shares is BMHN9M0 and the Company's LEI number is
894500GS6N5D41R6H966.

 

Use of Proceeds

The net proceeds receivable by the Company pursuant to the Placing are
expected to be applied principally to:

·    increase production capacity in line with sales growth;

·    further automate key production processes in order to increase
capacity, quality and productivity;

·    augment working capital in support of anticipated future growth;

·    support the Company's ESG programme; and

·    implement a new SAP financial reporting system.

The net proceeds of the Placing will be used for further investment in both
Glazing and EV but principally invested by the Company in developing the EV
product market opportunity. The EV market is seeing high levels of growth and
the Directors believe that this presents significant further opportunities for
the Group.

 

Company Highlights

·    Strip Tinning, founded in 1957 and headquartered in Birmingham, is an
established supplier of specialist connectors to the automotive sector.

·    The Group consists of two business lines; Glazing and EV. Over 90 per
cent. of the Group's historical sales have been related to Glazing systems by
way of busbars for in-screen heating, connectors for heating and antennae, and
supplies of tungsten.

·    The Group's expertise, consistent delivery of high-quality products,
and commitment to innovation has allowed it to build long-term customer
relationships with Tier One automotive glazing manufactures, via which its
products reach the majority of global automotive OEMs.

·    The transition of the automotive sector towards EV is providing
significant new growth opportunities for the Group, with battery-related
products representing the principal opportunity. In 2019, the Group launched
'ST Flex' to focus on these new opportunities, drawing on its experience with
flexible printed circuit connectors to provide connectivity and monitoring of
the multiple cells in a battery pack and other lightweight, easy to package
connector solutions.

·    The Group's Board and senior management team, led by CEO Richard
Barton, has over 100 years of combined experience in the global connectors
market and the automotive industry.

·    The Group is cash generative and profitable and has shown significant
growth over recent years, with revenue growing at a compounded annual growth
rate of 8.2 per cent between 2017 to 2021, despite the headwinds of the
COVID-19 pandemic and Brexit.

·    The Group's strategy is to remain a leading supplier of specialist
connectors for Glazing for all classes of automotive vehicles manufactured
worldwide and to become a leading supplier of connector sub-assemblies to the
EV market.

 

Richard Barton, Chief Executive Officer of Strip Tinning, commented:

"Today's admission to AIM is a significant landmark for Strip Tinning and a
special day in the Company's evolution. The business continues to go from
strength to strength and has come a long way since being founded in 1957,
plating wires and coils for general engineering applications in the local
Birmingham area.

We are now a leading supplier of specialist connectors to the automotive
sector, having established long-term customer relationships with some of the
automotive industry's most familiar names. Today's admission provides us with
the resources to further enhance our capabilities and continue on our exciting
journey.

I would like to take this opportunity to thank the Strip Tinning team for all
their hard work over the years and to welcome our new shareholders to the
register."

 

Capitalised terms used in this announcement shall, unless the context provides
otherwise, have the same meanings as in the Admission Document.

 

Enquiries:

Strip Tinning Holdings plc
 
                               Via Alma PR

Richard Barton, Chief Executive
Officer

Adam Le Van, Chief Financial Officer

 

Singer Capital Markets (Nominated Adviser and Sole Broker)
                                  +44 (0) 20 7496
3000

Rick Thompson

Will Goode

Alex Bond

James Fischer

 

Alma PR (Financial PR)
 
        striptinning@almapr.co.uk

Josh Royston
 
                              +44 (0) 20 3405
0205

Joe Pederzolli
 

 

 

IMPORTANT NOTICES:

Singer Capital Markets Advisory LLP ("SCM Advisory") has been appointed as
nominated adviser and Singer Capital Markets Securities Limited ("SCM
Securities" and together with SCM Advisory, "Singer Capital Markets") is
acting as sole broker and sole bookrunner to the Company in connection with
the Placing and Admissions. Singer Capital Markets, which is authorised and
regulated by the Financial Conduct Authority in the United Kingdom, is acting
exclusively for the Company and no-one else in connection with the Placing and
Admissions. Singer Capital Markets will not regard any other person as its
client in relation to the Placing and Admissions and will not be responsible
to anyone other than the Company for providing the regulatory protections
afforded to its clients, nor for providing advice in relation to the contents
of this announcement or any transaction, arrangement or other matter referred
to herein.

Neither Singer Capital Markets, nor any of its subsidiary undertakings,
affiliates or any of its directors, officers, employees, advisers, agents or
any other person accepts any responsibility or liability whatsoever for, or
makes any representation or warranty, express or implied, as to the truth,
accuracy, completeness or fairness of the information or opinions contained in
this announcement (or whether any information has been omitted from the
announcement) or any other information relating to the Company, its
subsidiaries or associated companies, whether written, oral or in a visual or
electronic form, and howsoever transmitted or made available or for any loss
howsoever arising from any use of this announcement or its contents or
otherwise arising in connection therewith and any liability therefore is
expressly disclaimed.

 

This announcement is directed only at persons whose ordinary activities
involve them in acquiring, holding, managing and disposing of investments (as
principal or agent) for the purposes of their business and who have
professional experience in matters relating to investments and are: (i) if in
a member state of the European Economic Area ("EEA"), Qualified Investors as
defined in article 2(e) of Regulation (EU) 2017/1129 (the "EU Prospectus
Regulation"); (ii) if in the United Kingdom, are Qualified Investors within
the meaning of the UK version of the EU Prospectus Regulation which forms part
of UK domestic law pursuant to the European Union (Withdrawal) Act 2018  and
(a) fall within article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005, as amended (the "Order") or (b) are persons
who fall within article 49(2)(a) to (d) (high net worth companies,
unincorporated associations, etc.) of the Order or (c) to whom it may
otherwise be lawfully distributed  (all such persons together being referred
to as "Relevant Persons").

 

This announcement must not be acted on or relied on by persons who are not
Relevant Persons.  Persons distributing this announcement must satisfy
themselves that it is lawful to do so.  Any investment or investment activity
to which this announcement relates is available only to Relevant Persons and
will be engaged in only with Relevant Persons.  This announcement does not
itself constitute an offer for sale or subscription of any securities in the
Company.

 

Neither this announcement nor any copy of it may be taken or transmitted,
published or distributed, in whole or in part, directly or indirectly, in or
into the United States, Australia, Canada, the Republic of South Africa, New
Zealand, Japan or to any persons in any of those jurisdictions or any other
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by law in certain jurisdictions and persons into whose possession any document
or other information referred to herein comes should inform themselves about
and observe any such restriction. Any failure to comply with these
restrictions may constitute a violation of the securities laws of any such
jurisdiction.

 

This announcement does not contain or constitute an offer of, or the
solicitation of an offer to buy or subscribe for, the securities referred to
herein to any person in any jurisdiction, including the United States
(including its territories and possessions, any State of the United States and
the District of Columbia), Australia, Canada, the Republic of South Africa,
New Zealand or Japan or in any jurisdiction to whom or in which such offer or
solicitation is unlawful.  The Placing and the distribution of this
announcement and other information in connection with the Placing and
Admissions in certain jurisdictions may be restricted by law and persons into
whose possession this announcement, any document or other information referred
to herein comes should inform themselves about and observe any such
restrictions.  Any failure to comply with these restrictions may constitute a
violation of the securities laws of any such jurisdiction.  Neither this
announcement nor any part of it nor the fact of its distribution shall form
the basis of or be relied on in connection with or act as an inducement to
enter into any contract or commitment whatsoever.

 

The securities referred to herein may not be offered or sold, transferred or
delivered directly or indirectly, in the United States unless registered under
the US Securities Act of 1933, as amended ("US Securities Act") or offered in
a transaction exempt from, or not subject to, the registration requirements of
the US Securities Act or any other applicable securities laws of the United
States and in accordance with any applicable securities laws of any state or
other jurisdiction of the United States. The securities referred to herein
have not been and will not be registered under the US Securities Act or under
the applicable securities laws of Australia, Canada, the Republic of South
Africa, New Zealand or Japan. There will be no public offer of the securities
referred to herein in the United States, Australia, Canada, the Republic of
South Africa, New Zealand or Japan. Subject to certain exceptions, the
securities referred to herein may not be offered or sold in Australia, Canada,
the Republic of South Africa, New Zealand or Japan or to, or for the account
or benefit of, any national, resident or citizen of Australia, Canada, the
Republic of South Africa, New Zealand or Japan.

 

The securities referred to herein have not been and will not be approved or
disapproved by the US Securities and Exchange Commission, any state securities
commission or other regulatory authority in the United States, nor have any of
the foregoing authorities passed upon or endorsed the merits of the Placing or
the accuracy or adequacy of this announcement.  Any representation to the
contrary is a criminal offence in the United States.

 

Any subscription for or purchase of securities in the Placing should be made
solely on the basis of the information contained in the Admission Document
published by the Company in connection with the Placing and Admissions.  No
reliance may or should be placed for any purposes whatsoever on the
information contained in this announcement or its accuracy, completeness or
fairness.  This announcement has not been approved by any competent
regulatory authority.

 

The price of shares and any income expected from them may go down as well as
up and investors may not get back the full amount invested upon disposal of
the shares.  Past performance is no guide to future performance, and persons
needing advice should consult an independent financial adviser.

 

Certain figures contained in this announcement have been subject to rounding
adjustments. Accordingly, in certain instances, the sum or percentage change
of the numbers contained in this announcement may not conform exactly with the
total figure given.

 

Neither the content of the Company's website nor any website accessible by
hyperlinks on the Company's website is incorporated in, or forms part of, this
announcement.

 

Forward looking statements

 

Certain statements in this announcement are or may constitute forward looking
statements, including statements about current beliefs and expectations of the
Directors. In particular, the words "expect", "anticipate", "estimate", "may",
"should", "plan", "intend", "will", "would", "could", "target", "believe" and
similar expressions (or in each case their negative and other variations or
comparable terminology) can be used to identify forward looking statements.
Such forward looking statements are based on the Board's expectations of
external conditions and events, current business strategy, plans and the other
objectives of management for future operations, and estimates and projections
of the Company's financial performance.

 

Though the Board believes these expectations to be reasonable at the date of
this announcement they may prove to be erroneous. Forward looking statements
involve known and unknown risks, uncertainties and other factors which may
cause the actual results, achievements or performance of the Company, or the
industry in which the Company operates, to be materially different from any
future results, achievements or performance expressed or implied by such
forward looking statements.

 

Any forward looking statement in this announcement speaks only as of the date
it is made. Save as required by law or the AIM Rules, the Company undertakes
no obligation to publicly release the results of any revisions to any forward
looking statements in this announcement that may occur due to any change in
the Board's expectations or in order to reflect events or circumstances after
the date of this announcement.

 

Any forward looking statement in this announcement based on past or current
trends and/or activities of the Company should not be taken as a
representation or assurance that such trends or activities will continue in
the future. No statement in this announcement is intended to be a profit
forecast.

 

 

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