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Surface Transforms plc

Surface Transforms Successful £1.9 million placing

Surface Transforms plc (LON:SCE), manufacturers of carbon fibre reinforced ceramic materials, has today announced that it has successfully placed 12,303,600 new ordinary shares of 1p each at 15.5 pence per placing share, raising gross proceeds of approximately £1.9 million pursuant to its existing authority to issue equity for cash, conditional on admission of the Ordinary Shares to trading on AIM.

The funds raised will allow the business to grow and develop, with far less dependence on the timing of SOP for OEM 6. The net proceeds of the Placing will fund the further advancement and strengthening of IP, the acquisition of capital plant and for general working capital purposes.

Related Party Transactions

Unicorn Asset Management Limited, as a substantial shareholder of the Company, is subscribing for 1,484,776 Placing Shares, which constitutes a related party transaction under the AIM Rules for Companies.

Canaccord Genuity Group Inc, as a substantial shareholder of the Company, is subscribing for 2,519,641 Placing Shares, which constitutes a related party transaction under the AIM Rules for Companies.

Accordingly, the board of directors of the Company consider, having consulted with the Company’s nominated adviser, that the terms of the participation by Unicorn Asset Management Limited and Canaccord Genuity Group Inc. are fair and reasonable insofar as the Company’s shareholders are concerned.

David Bundred, Chairman of Surface Transforms plc, commented:

“Following recent investor demand we have conducted a placing that provides the Company with additional working capital. The strengthened balance sheet de-risks the business, and comes at an exciting time in the Company’s development.”

“We are pleased that current shareholders continued to support our strategy to become a series production supplier of carbon ceramic brake discs to the large volume original equipment manufacturer automotive market. We look forward to the future with confidence.”

Admission and Total Voting Rights

The new Ordinary Shares will, when issued, rank pari passu in all respects with the existing Ordinary Shares of the Company. Application has been made for the 12,303,600 new Ordinary Shares to be admitted to trading on AIM and accordingly dealings are expected to commence at 8.00 a.m. on 22 March 2019. Following Admission, the total number of voting rights in the Company will be 136,014,016 and shareholders may use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA’s Disclosure Guidance and Transparency Rules.