Surface Transforms Regulatory News (SCE)

Surface Transforms plc

("Surface Transforms" or the "Company")

Result of Open Offer and

Total Voting Rights

Surface Transforms plc (AIM: SCE) is pleased to announce it has raised gross proceeds of £1.0 million pursuant to the Open Offer announced on 18 March 2016, that was heavily over-subscribed.

Highlights:

· £5.5 million raised pursuant to the Placing and Open Offer following shareholder approval at the General Meeting on 4 April 2016

· Applications received for 7,651,596 Open Offer Shares, representing a take-up of 244.9 per cent.. Applications under the excess entitlements will therefore be scaled down resulting in a total of 6,250,000 Open Offer Shares, equivalent to £1.0 million proceeds, to part accommodate the excess demand

Placing and Open Offer

On 18 March 2016, Surface Transforms announced details of a Placing and Open Offer in which it had conditionally raised £4,500,000 by means of a placing through the issue of 28,125,000 Placing Shares at 16p per share and to provide all Qualifying Shareholders with an opportunity to invest by way of an Open Offer, also at 16p per share, for an aggregate of up to 3,125,000 Open Offer Shares.

The Board is pleased to announce that the Open Offer, similar to the Placing, was oversubscribed having received valid acceptances in respect of 7,651,596 Open Offer Shares from Qualifying Shareholders. Accordingly, the Board has agreed to double the planned Open Offer of 3,125,000 Open Offer Shares to 6,250,000 Open Offer Shares to part accommodate the excess demand.

As a result of the size of the Placing and Open Offer, it is expected that not all applications under the Open Offer will qualify for EIS. Accordingly the Board expect to allocate EIS shares to Shareholders to satisfy their basic entitlement under the Open Offer in full, but scale back on a pro-rata basis in respect of any excess entitlement applications.

Open Offer Statistics

Terms defined in the Circular published by the Company on 18 March 2016 shall have the same meaning in this announcement unless the context requires otherwise.

David Bundred, Chairman said: "We are extremely pleased that the Board's decision to make an Open Offer to all shareholders, combined with the oversubscribed Placing of shares to certain existing and new institutions, has resulted in this most encouraging response from shareholders. I would like to thank both existing and new shareholders for their support. The take-up we have seen for this capital raising demonstrates the strength of support for the Company's proposed strategies and cost reduction programme, and we look forward to announcing further progress on those fronts in due course."

Admission and Total Voting Rights

The New Ordinary Shares will, when issued, rank pari passu in all respects with the Existing Ordinary Shares of the Company. Application has been made for the 6,250,000 New Ordinary Shares to be admitted to trading on AIM and accordingly dealings are expected to commence at 8.00am on 18 April 2016. Following Admission, the total number of voting rights in the Company will be 90,091,081 and Shareholders may use this figure 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 FCA's Disclosure and Transparency Rules.

- Ends -

For enquiries, please contact:

For further Company details, visit www.surfacetransforms.com.