Surface Transforms (LON:SCE), manufacturers of carbon fibre reinforced ceramic automotive brake discs has announced that the Open Offer was significantly over-subscribed, raising gross proceeds of £2.7m.
Applications were received for 27,420,745 Open Offer Shares, representing a take-up of 137.1 per cent of the 20,000,000 available Open Offer Shares.
As permitted under the terms of the Open Offer, the Board has decided to accept these validly received applications for 27,420,745 Open Offer Shares in full.
Application will be made for 27,420,745 Open Offer Shares to be admitted to trading on AIM, conditional on the Resolutions being passed. It is expected that Admission and dealings in the Open Offer Shares will commence at 8.00 a.m. on 19 December 2023.
Subject to the Resolutions being passed, £11.0m gross proceeds will have been raised pursuant to the Placing, Subscription and Open Offer
David Bundred, Non-Executive Chairman, commented:
“We want to thank investors, for their support of this Open Offer and are delighted, in a difficult market, to have been oversubscribed on both the Placing and Open Offer. Together with the £13.2m loan, described during the fund raising and still expected to conclude imminently, the combined £24.2m cash availability gives us the balance sheet strength to accelerate our capacity expansion, thereby delivering the contract wins of recent years.
We continue to expect to move into profitability and free cash generation in 2024.”
The capitalised terms used in this announcement have the same meanings as defined in the Circular issued by the Company on 15 November 2023, unless otherwise stated.
Surface Transforms plc. (LON: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
