StockMarketWire.com - Surface Transforms proposes raising up to about £3.5m via a placing, subscription and open offer.

The placing, subscription and open offer was of up to about 22.6m shares at 15.5p each.

The placing and subscription and were to raise about £3.0m, with the open offer to raise up to about £0.5m.

Funds would be used to properly exploit the commercial opportunities before the company, notably:

- capital expenditure, namely £750k for ceramic layer furnaces which is expected to further increase production capacity to 20,000 discs per annum

- £250k for additional testing and development costs for OEM 3; and

- general working capital purposes of approximately £2.0 million, needed due to (i) expected 12 month delay in aerospace revenues and (ii) OEM 3 commercial road car revenues being delayed by 12 months.