REG - Surface Transforms - Result of Open Offer

Surface TransformsAnnouncement

24/05/2024 07:00

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RNS Number : 7524P  Surface Transforms PLC  24 May 2024

This information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No.
596/2014 as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the
Company's obligations under Article 17 of MAR. Upon the publication of this
announcement, this inside information is now considered to be in the public
domain.

Surface Transforms plc

("Surface Transforms" or the "Company")

 

Result of Open Offer

 

Surface Transforms (AIM:SCE), manufacturers of carbon fibre reinforced ceramic
automotive brake discs is pleased to announce that the Open Offer was
significantly over-subscribed, with applications in excess of £4.5m
(450,000,000 Open Offer Shares), representing a take-up of 226 per cent. of
the 200,000,000 available Open Offer Shares.

 

As permitted under the terms of the Open Offer, the Board has decided to
extend and accept 300,000,000 Open Offer Shares, raising £3.0m. It is
expected that Admission and dealings in the 300,000,000 Open Offer Shares will
commence at 8.00 a.m. on 28 May 2024.

 

In aggregate, £9.5m gross proceeds will have been raised pursuant to the
Placing, Subscription and Open Offer, in addition to the £13.2m local
authority loan (ringfenced for capital expenditure) announced on 11 December
2023.

 

David Bundred, Non-Executive Chairman, commented:

 

"Against the background of the recent difficult Company trading background, we
are particularly appreciative, if not humbled, by this shareholders' support.
With the combined £22.7m gross proceeds from the £9.5m Placing,
Subscription, and Open Offer together with the £13.2m Loan the Board is now
confident that we have sufficient funding for our working capital and capital
expenditure needs, thereby enabling us to seize the commercial opportunity
available of a £390m order book and £400m confirmed contract prospective
pipeline."

 

The capitalised terms used in this announcement have the same meanings as
defined in the Circular issued by the Company on 3 May 2024, unless otherwise
stated.

 

 For further information, please contact:

 Surface Transforms plc                                             +44 151 356 2141

 David Bundred, Chairman
 Kevin Johnson, CEO
 Isabelle Maddock, CFO

 Zeus (Nominated Adviser and Joint Broker)                          +44 203 829 5000

 David Foreman / James Edis / Ed Beddows (Investment Banking)
 Dominic King (Corporate Broking)

 Cavendish Capital Markets Ltd (Joint Broker)                       +44 20 7220 0500

 Ed Frisby / Abigail Kelly (Corporate Finance)
 Andrew Burdis / Harriet Ward (ECM)

About Surface Transforms

Surface Transforms plc. (AIM:SCE) develops and produces carbon‐ceramic
material automotive brake discs. The Company is the UK's only manufacturer of
carbon‐ceramic brake discs, and only one of two mainstream carbon ceramic
brake disc companies in the world, serving customers that include major OEMs
in the global automotive markets.

The Company utilises its proprietary next generation Carbon Ceramic Technology
to create lightweight brake discs for high‐performance road and track
applications for both internal combustion engine and electric vehicles. While
competitor carbon‐ceramic brake discs use discontinuous chopped carbon
fibre, Surface Transforms interweaves continuous carbon fibre to form a 3D
matrix, producing a stronger and more durable product with improved heat
conductivity compared to competitor products; this reduces the brake system
operating temperature, resulting in lighter and longer life components with
superior brake performance. These benefits are in addition to the benefits of
all carbon‐ceramic brake discs vs. iron brake discs: weight savings of up to
70%, longer product life, consistent performance, reduced brake pad dust and
corrosion free.

The Company holds the London Stock exchange's Green Economy Mark

For additional information please visit www.surfacetransforms.com
(//www.surfacetransforms.com)

 

 

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