Business
Placing, Open Offer & Notice of General Meeting
Placing, Open Offer & Notice of General Meeting.
About this update from Surface Transforms Plc
[{"type":"text","content":"\n \nRNS Number : 5071S Surface Transforms PLC 18 March 2016 \n\nSurface Transforms plc\n(\"Surface Transforms\" or the \"Company\")\n \nPlacing and Open Offer to raise up to £5 million\nConversion of Loan of £400,000\nPosting of Circular and Notice of General Meeting\nAppointment of Joint Broker\n \nSurface Transforms (AIM:SCE) is pleased to announce a conditional equity fundraising of up to £5.0 million. Cantor Fitzgerald Europe and finnCap Ltd have conditionally placed on behalf of the Company 28,125,000 new ordinary shares (\"Placing Shares\") of 1p each (\"Ordinary Shares\") at a price of 16p per share (the \"Placing Price\"), raising gross proceeds of £4.5 million (the \"Placing\").\n \nAdditionally, to provide shareholders who have not taken part in the Placing with an opportunity to participate, the Company is providing all Qualifying Shareholders with the opportunity to also subscribe at 16p per Ordinary Share, for an aggregate of 3,125,000 new Ordinary Shares (\"Open Offer Shares\") to raise up to £0.5 million. Qualifying Shareholders may subscribe for Open Offer Shares on the basis of 1 Open Offer Shares for every 17.02914592 Existing Ordinary Shares held on the Record Date. Shareholders subscribing for their full entitlement under the Open Offer may also request additional New Ordinary Shares through the Excess Application Facility.\n \nAssuming full take up under the Open Offer, the gross proceeds of the Open Offer will raise a further £0.5 million. The Open Offer is not underwritten.\n \nGroup-14 LTD, a company beneficially owned by Richard Gledhill, a non-executive director, has also agreed, subject to shareholder approval, to convert an outstanding loan of £400,000 into Ordinary Shares at the Placing Price, resulting in the further issuance of 2,500,000 Ordinary Shares.\n \n \nReasons for the Fundraising\n \nThe Company remains focused on the premium automotive brake disc market, and the brake disc market for military and light commercial aircraft. As previously communicated to shareholders, the Company is in the process of pursuing a number of significant original equipment manufacturer (\"OEM\") production contract opportunities in these markets.\n \nThe net proceeds of the Fundraising will enable the Board to pursue its strategy of having the capacity to suppl...