Surface Transform raises £1.53m for additional working capital

Carbon fibre ceramic materials manufacturer Surface Transforms on Wednesday raised £1.53m through an oversubscribed placing.

The AIM-traded carbon ceramic brake disc developer said the proceeds will be used for general working capital purposes, and for any further testing and development costs which may be required.

David Bundred, chairman of Surface, said: "Following recent investor demand we have conducted a placing that broadens the institutional shareholder base and provides additional working capital. The strengthened balance sheet will also be beneficial during the current ongoing evaluations by mainstream automotive OEMs."

The firm placed 9,000,000 new ordinary shares of 1p each at 17p per share, bringing the total number of voting rights in the company to 123,035,416.

"We are pleased to welcome the new investors to the register as we continue with our strategy to become a series production supplier of carbon ceramic brake discs to the large volume original equipment manufacturer (OEM) automotive market and to the niche military and small commercial aircraft brake market," said Bundred.

Surface said it continues to perform in line with expectations.

As of 1356 BST, Surface Transforms’ shares were up 1.39% at 18.25p.