Surface Transforms PLC on Thursday said it has raised £16.0 million through a placing and subscription.
Surface Transforms is a Liverpool-based manufacturer of carbon fibre reinforced ceramic materials.
On Wednesday, the company proposed a £16.0 million placing and subscription of shares priced at 40 pence each.
Shares in the company were down 12% to 40.00 pence each in London on Thursday afternoon.
On Thursday, the company said that 39.4 million shares were placed and 600,000 shares were subscribed to.
Further, the company said it intends to offer shareholders with the opportunity to subscribe to a further 7.5 million open offer shares at the issue price. This will raise a further £3.0 million.
Surface Transforms said it plans to use the proceeds to partially fund the construction cost to increase the revenue capacity of its Knowsley manufacturing facility to £75 million from £50 million per year.
Chair David Bundred said: ‘This funding provides the foundation to meet the capacity needs of our growing customer base for the immediate future whilst also providing a significant step forward for Surface Transforms being able to generate levels of free cash flow that will provide us significant financial flexibility when choosing how to fund future stages of this journey.’
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