Brakes specialist raises £5m for OEM contracts

Surface Transforms

MERSEYSIDE manufacturer Surface Transforms has undertaken a conditional equity fundraising of up to £5m as it pursues a raft of original equipment manufacturer (OEM) production contract opportunities.

Cantor Fitzgerald Europe and finnCap have conditionally placed on behalf of the company 28,125,000 new ordinary shares of 1p each at a price of 16p per share raising gross proceeds of £4.5m.

Additionally, to provide shareholders who have not taken part in the placing with an opportunity to participate, the company is providing all qualifying shareholders with the opportunity to also subscribe at 16p per ordinary share, for an aggregate of 3,125,000 new ordinary shares to raise up to £0.5m.

The AIM-listed company, which makes ceramic brakes mostly used in sports cars and the disc brake market for light military aircraft, has recently signed heads of terms for a 55,000sq ft building at Knowsley Business Park, which is more than four times as big as its current site at Ellesmere Port.

A statement from Surface Transforms said: “We are is in the process of pursuing a number of significant OEM production contract opportunities in these markets.
 
“The net proceeds of the fundraising will enable the board to pursue its strategy of having the capacity to supply the commercial volumes which may be required by automotive OEMs who may be seeking an alternate supplier of carbon fibre reinforced ceramic brake discs from Brembo SGL as well as fulfil their existing commitments to the company’s aerospace and other customers.”

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