Result of Open Offer

THE INFORMATION COMMUNICATED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATIONS (EU) NO. 596/2014. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SINGAPORE, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

FURTHER, THIS ANNOUNCEMENT IS MADE FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO SELL OR ISSUE OR SOLICITATION TO BUY, SUBSCRIBE FOR OR OTHERWISE ACQUIRE SHARES IN SURFACE TRANSFORMS PLC IN ANY JURISDICTION IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL.

Surface Transforms plc

("Surface Transforms" or the "Company")

Result of Over-Subscribed Open Offer

Surface Transforms plc (AIM: SCE) is pleased to announce it has raised gross proceeds of £0.5 million pursuant to the Open Offer announced on 6 July 2017, that was heavily over-subscribed.

Highlights:

· £3.5 million raised pursuant to the Placing, Subscription and Open Offer subject to shareholder approval at the General Meeting on 25 July 2017.

· Applications received for 5,091,616 Open Offer Shares, representing a take-up of 157.84 per cent. which is to be scaled back to 3,225,806 Open Offer Shares. The Company is exploring alternative avenues to satisfy this additional demand.

Placing and Open Offer

On 6 July 2016, Surface Transforms announced details of a Placing and Subscription in which it had conditionally raised £3,000,000 by means of a placing through the issue of 17,419,500 Placing Shares and 1,935,500 Subscription Shares at 15.5p per share and to provide all Qualifying Shareholders with an opportunity to invest by way of an Open Offer, also at 15.5p per share, for an aggregate of up to 3,225,806 Open Offer Shares.

The Board is pleased to announce that the Open Offer, was oversubscribed having received valid acceptances in respect of 5,091,616 Open Offer Shares from Qualifying Shareholders, being equivalent to £789,200.48. The Board anticipates using its additional authorities to satisfy the excess Open Offer demand of 1,865,810 Ordinary Shares. A further announcement will be made in due course.

It is expected that all applications under the Open Offer will qualify for EIS. 

Open Offer Statistics

Terms defined in the Circular published by the Company on 6 July 2017 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 Placing of shares to certain existing institutions, has resulted in this most encouraging response from shareholders. I would like to thank 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."

For further information, please contact:

Surface Transforms plc

Kevin Johnson, CEO +44 151 356 2141

David Bundred, Chairman

Cantor Fitzgerald Europe (Nomad & Joint Broker)

David Foreman, Michael Reynolds (Corporate Finance) +44 20 7894 7000

Mark Westcott, Alex Pollen (Sales)

finnCap Ltd (Joint Broker)

Stephen Norcross, Richard Chambers (Corporate Broking) +44 20 7220 0500

Ed Frisby, Giles Rolls (Corporate Finance)