Business
Shareholder Circular of Placi
Shareholder Circular of Placi.
About this update from Surface Transforms Plc
[{"type":"text","content":"\n RNS Number : 5110V Surface Transforms PLC 03 November 2010 \n\nRNS\n \nSurface Transforms plc\nPublication of Shareholder Circular and Open Offer\n \n \nIntroduction\nSurface Transforms plc (\"Surface Transforms or the Company\") today announces that it has conditionally placed 6,317,000 new ordinary shares (\"Placing Shares\") of 1p each (\"Ordinary Shares\") at a price of 17p per share thereby raising gross proceeds of £1.074 million (the \"Placing\").\n \nIn order to provide shareholders who have not taken part in the Placing with an opportunity to invest in the Company, the Company is providing all qualifying shareholders with the opportunity to subscribe, also at 17p per share, for an aggregate of 3,043,416 new Ordinary Shares (\"Open Offer Shares\") on the basis of 1 new Ordinary Share for every 8 existing Ordinary Shares held. Shareholders are being offered the opportunity to apply for additional Open Offer Shares in excess of their pro rata entitlements to the extent that other shareholders do not take up their entitlements in full. In the event that applications are received for in excess of 3,043,416 Open Offer Shares, excess applications will be scaled back pro rata to existing shareholdings.\n \nReasons for the Placing and Open Offer\nAs announced in the Company's Final Results on 16 August 2010, the challenges and opportunities now facing management have begun to move away from technology based issues to operating matters relating to the management of product supply and working capital to manage the expected growth of the business.\n \nThe Company currently has a number of significant commercial opportunities in two of its four primary markets, namely (1) automotive brakes and clutches; and (2) aircraft brakes; and it is in various, advanced stages of negotiating development and supply agreements with major companies who operate in both of these markets. Within the automotive market, there are three global brake system suppliers who currently purchase the Company's ceramic brake and clutch discs and they have each commenced negotiations with Surface Transforms to increase supply volumes for the forthcoming year.\n \nAs announced on 4 October 2010, the Company has entered into a development agreement, which may lead to a supply agreement, with a major USA based ...