LONDON (Alliance News) - Shares in Surface Transforms PLC fell almost 10% Monday morning, after the carbon-ceramic brakes maker said it raised GBP327,000 through a placing of new shares at a discounted price of 8.5 pence per share.
Shares were trading 9.9% lower Monday morning, at 10.25 pence per share.
Surface Transforms said it placed 3.8 million new shares, or approximately 9.1% of the company, at a price of 8.5 pence per share. The proceeds will be used to strengthen the company's working capital.
It noted that while the placing was conducted at a 25% to its closing share price on Friday, the placing price represented a 6.3% premium to the last equity fundraising it undertook. Monday's placing completes the GBP821,000 fundraising plan that the company announced in January.
The new shares will start trading on AIM on Tuesday.
Surface Transforms said that its full-year results are expected to be in line with market expectations, as it targets to break even.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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