Surface Transforms (LON:SCE) has conditionally raised up to £1.5mln through a placing and open offer of shares.
The developer of carbon fibre reinforced ceramic products said 3.85mln shares have been conditionally placed at 13p a share, raising £0.5mln.
Existing shareholders have not been left out, as they will be offered the opportunity to subscribe for shares at 13p a pop on the basis of two new shares for every 11 shares currently held.
The open offer, which has not been underwritten, could raise up to £1mln.
Surface Transform shares, up 0.125p today, currently trade bang on the open offer price of 13p.
The funds from the issue will permit the company to finance the first phase of its investment programme, comprising: cost reduction; advanced machining; CVIST3 – the new carbon vapour infiltration process plant; adoption of total quality management systems; additional engineering resources.
The company also updated on current trading, revealing that the changes introduced to improve retrofit sales are having a positive effect on trading in the current financial year ending 31 May 2015.
As at 31 August 2014, the automotive order book, representing confirmed orders totalled £0.5 million (2013: £0.2 million) all being for delivery in the current financial year.
“This strengthening in our order book, together with sales invoiced during the first four months of the year, equates to more than 50% of the company's budgeted turnover for the full financial year,” the company revealed.