Source: TheBusinessDesk.com post
LIVERPOOL, U.K. – Surface Transforms, the Knowsley-based ceramic brake manufacturer, has released 10.8 million new ordinary shares to raise gross proceeds of around £1.4m.
Surface Transforms makes specialist brakes for high performance cars and aircraft.
Cantor Fitzgerald is acting as nominated adviser and joint broker and finnCap is acting as joint broker in connection with the placing by the AIM-listed company.
In addition to the placing, Surface Transforms intends to provide all qualifying shareholders with the opportunity to subscribe for an aggregate of up to 2,307,692 new ordinary shares at the issue price of 13p per share, to raise up to approximately £300,000, before expenses.
The issue price represents a discount of approximately 16 percent to the price of 15.5p per existing ordinary share, being the closing price on April 8, 2020.
The net proceeds of the placing will provide Surface Transforms with sufficient working capital to enable it to continue operating should COVID-19 impact the business in a material manner.
The board has modelled various scenarios and a working capital buffer of £1.3m is sufficient, even where forecast revenues to fall approximately 50% to £1.6m for the year ending December 31, 2020.
As set out in the company’s COVID-19 Update on March 27, it remains operational and is manufacturing brake discs with sufficient raw material and component inventory to continue to do so for some months.
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Since the start of the year the company has not yet received any cancellations or original equipment manufacturer (OEM) deferments of pre-contracted purchases.