Surface Transforms’ open offer ‘significantly’ over-subscribed
Knowsley-based specialist brakes manufacturer, Surface Transforms, has raised gross proceeds of £2.7m from an open offer that it said was significantly over-subscribed.
Applications were received for 27,420,745 open offer shares, representing a take-up of 137.1% of the 20,000,000 available open offer shares.
As permitted under the terms of the open offer, the board has decided to accept these validly received applications for 27,420,745 open offer shares in full.
It is expected that admission and dealings in the open offer shares will commence at 8am on December 19, 2023.
Subject to the resolutions being passed, £11m gross proceeds will have been raised pursuant to the placing, subscription and open offer launched earlier last month.
David Bundred, non-executive chairman, said: “We want to thank investors, for their support of this open offer and are delighted, in a difficult market, to have been oversubscribed on both the placing and open offer.
“Together with the £13.2m loan, described during the fund raising and still expected to conclude imminently, the combined £24.2m cash availability gives us the balance sheet strength to accelerate our capacity expansion, thereby delivering the contract wins of recent years.”
He added: “We continue to expect to move into profitability and free cash generation in 2024.”
On November 14, the business announced it had raised gross proceeds of £8.3m from a share placing to fund working capital requirements as the specialist manufacturer gears up for a phased increase in production levels.