Surface Transforms Regulatory News (SCE)

8 Dec 2009 07:00



Surface Transforms Plc

("Surface Transforms" or "the Company")

 Placing 

Introduction

The Company today announces that it has conditionally placed with certain existing shareholders, including directors and senior management of the Company, 800,000 new ordinary shares ("Placing Shares") of 1p each ("Ordinary Shares") at a price of 10p per share thereby raising gross proceeds of £80,000 (the "Placing"). The proceeds will provide specific capital to finance the investment in additional working capital related to the Company's carbon vapour infiltration (CVI) process. The CVI manufacturing stage is a key part of the Company's proprietary process for manufacturing silicon carbide brake discs and components.

The Placing Shares will represent approximately 3.29 per cent of the Company's enlarged share capital.

Background to and reasons for the Placing

A number of existing shareholders had expressed interest in further investment in the Company and this coincided with a need to increase the levels of inventory of 'mission critical' components and spares relating to the CVI process. The newly commissioned CVI process is a critical stage in the manufacture of silicon carbide components and process downtime is minimised by having 'mission critical' inventory and spares available at all times.

Issue of New Shares

The Placing is solely 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 or around 15th December 2009.

The Placing Shares will, when issued, rank pari passu in all respects with the existing Ordinary Shares, including the right to receive dividends and other distributions declared following Admission. 

Directors' Participation in the Placing

The following Directors participated in the Placing and their holdings are detailed below:

In addition, two members of the senior management team also participated in the Placing and in total directors and management of the Company invested £44,500 of the £80,000 Placing funds.

Total Voting Rights

For the purposes of the Disclosure and Transparency Rules, the Company's total issued share capital following the completion of the Placing will consist  of 24,347,328 ordinary shares of 1p each with one voting right per share. There are no shares held in treasury. 

The above figure may be used by shareholders 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 Disclosure and Transparency Rules.

Enquiries:

Seymour Pierce Limited, which is regulated by the Financial Services Authority and is a member of the London Stock Exchange, is acting as nominated adviser and broker exclusively for the Company in connection with the Placing. Its responsibilities as the Company's nominated adviser under the AIM Rules are owed solely to the London Stock Exchange and are not owed to the Company or to any Director or any other person in respect of his decision to acquire ordinary shares in the Company in reliance on any part of this announcement. No representation or warranty, express or implied, is made by Seymour Pierce Limited as to any of the contents of this announcement for which the Directors and the Company are responsible (without limiting the statutory rights of any person to whom this announcement is issued). Seymour Pierce Limited has not authorised the contents of, or any part of, this announcement, and no liability whatsoever is accepted by Seymour Pierce Limited for the accuracy of information or opinions contained in this announcement or for the omission of any material information. Seymour Pierce Limited will not be offering advice and will not otherwise be responsible for providing customer protections to recipients of this announcement in respect of the Placing or any acquisition of shares in the Company.