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[July 2009]
Surface Transforms Goes For Placing
Surface Transforms Plc (Ellesmere Port, Cheshire, England) has announced that it has conditionally placed with certain new and existing shareholders 4,516,580 new ordinary shares at a Placing Price of 10p per share thereby raising gross proceeds of £0.45 million. The net proceeds will provide the company with working capital for future growth and strengthen its balance sheet.
The Placing Shares will represent approximately 19.18% of the company's Enlarged Share Capital. The company has received irrevocable commitments from certain shareholders representing around 25% of the Issued Share Capital to vote in favour of the resolutions to be proposed at the General Meeting.
Surface Transforms said that it had made considerable operational progress in the development of its product for the aerospace brake systems market and now wished to accelerate the adoption of the carbon ceramic brake technology in an active niche aircraft programme opportunity.
The company's cash resources as at 31 May 2009 were £404,275, which provides sufficient working capital for at least the next 12 months. However, to build on the progress made by the company over the last year and to reduce the direct cost of manufacturing its carbon ceramic discs, it is proposing to effect the Placing at the mid-market price.
The proceeds of the Placing, which amount to approximately £410,000 after expenses, will allow the company to make the necessary capital investments to continue to accelerate its product development, provide additional working capital and strengthen its balance sheet.
Kevin D'Silva , Chairman of Surface Transforms, said: “Last year, the Company made progress within its aerospace and defence markets against a background of a severe global recession and a worldwide contraction in the automotive industry”.
An EGM Circular has been sent to shareholders in the company. The issue of the Placing Shares is conditional, inter alia, upon the company obtaining approval from its shareholders at an EGM to grant the Board authority to allot the Placing Shares and to disapply statutory pre-emption rights which would otherwise apply to the allotment of the Placing Shares. The Placing is further conditional upon Admission of the Placing Shares to AIM.
Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. It is expected that such Admission will become effective and that dealings will commence on 13 August 2009.
ENDS