Carbon-ceramic brakes maker Surface Transforms (LON:SCE) has raised £327,000 through a placing of shares at a sharp discount to the market price.
The company has placed the shares at 8.5p each, compared to a closing price 11.375p on the last trading day before the placing was announced.
David Bundred, chairman of the company, and Richard Gledhill, a non-executive director, are participating in the placing, with Bundred bagging 58,824 shares and Gledhill 58,824.
Despite the share purchase, Gledhill’s stake in the company will be reduced from 22.7% to 20.8%; Bundred’s stake will remain at 1%.
"This placing completes the proposed fundraising of £821,000 announced in January 2013 of which £504,000 was actually raised in the period up to March 2013. The placing proceeds will be used for ongoing working capital purposes,” Bundred said.
The chairman added that the board continues to target break even at the underlying earnings (EBITDA) level and results for the year are expected to be in line with market expectations.
Shares Surface Transforms shed 1% at 11.27p in the first half hour of trading.