Surface Transforms placing and offer raises £500k

SURFACE Transforms, the Merseyside pioneer and manufacturer of high performance ceramic brake discs for the automotive and aviation sectors, has raised £504,000 in a share offer.

The Ellesmere Port company unveiled the offer at the end of January and had hoped to raise £765,000.

It secured £256,000 through a placing of 3.2 million shares at 8p, and invited shareholders to take part in an open offer of more than 7 million shares. But less than half were sold raising £248,000, rather than the hoped for £565,500.

The money will allow it to invest in its production facilities with the goal of halving costs over the next three year, which it says will help it compete on price with its rivals.

Chairman David Bundred said: “We are pleased that the board was able to make an open offer to all shareholders combined with a placing of shares to certain institutions.

“The take-up we have seen for this capital raising both from new and existing shareholders which, together with the passing of the resolutions at today’s general meeting, demonstrates the strength of support for the company’s proposed strategies and cost reduction programme.”