DMTR.L Regulatory News (DMTR)

1 Aug 2008 07:00

1 August 2008

Oxford Advanced Surfaces Group plc

Fundraising and appointment of Broker

Oxford Advanced Surfaces Group plc ("OASG" or the "Company") which develops and commercialises advanced materials and technology solutions leveraging breakthrough surface modification technology, announces that it has successfully completed a fundraising of £5 million (before expenses) with a number of new and existing shareholders (the "Fundraising"). The Company also announces the appointment of Novum Securities Limited ("Novum") as broker to the Company.

The Fundraising

The Company has today entered into a placing agreement with Novum under the terms of which Novum has agreed, as agent for the Company, to use reasonable endeavours to procure placees for 7,311,000 new ordinary shares ("the Placing Shares") at the placing price of 65p per new share ("the Placing").

Simultaneously with and conditional on completion of the Placing, the following directors of the Company have agreed to subscribe in aggregate for 384,600 new ordinary shares, representing 5 per cent. of the Fundraising and an aggregate subscription amount of £249,990: 

Application has been made for the 7,695,600 new ordinary shares to be admitted to trading on AIM ("Admission") which is expected to take place on 6th August 2008. Completion of the Fundraising is conditional upon Admission.

The new ordinary shares to be issued pursuant to the Fundraising represent approximately 4% of the current issued share capital. Once issued, the total voting rights of the company will be 185,619,038 ordinary shares.

Information on OASG

OASG develops and commercialises advanced materials and technology solutions leveraging a proprietary surface modification technology called Onto™. The technology exploits and controls a reactive chemistry allowing the rapid and convenient modification of the surface properties of a wide range of materials with a high degree of control over processing parameters. Onto™ can be applied as a wet coating by spin, dip, roll or spray and cured with either heat or irradiation. By selective coating (screen, inkjet printing) or selective curing (photolithography) highly patterned surfaces can be formed. This delivers valuable changes to surface functionality. The Onto™ coating technology is a versatile, effective, yet simple approach to deliver intelligent advanced materials.

Reasons for the Fundraising

Since joining AIM in December 2007, OASG has made significant progress in developing its proprietary science towards commercial applications. The Company is in negotiations with a number of major companies in the UK, Europe and the USA with regards to a diverse range of applications for its core patented technology Onto™.  In addition to a joint development agreement with DuPont Advanced Fibre Systems, the Company has entered into 5 other agreements with companies offering significant opportunity. The net result is that the Company currently has 8 projects in the development phase across a broad range of commercial applications and a significant number of other opportunities awaiting proof of concept.

Whilst the business has adequate resources to continue to implement its original business plan and service this ongoing programme, there is substantial demand for the Company's technology which the Company is currently unable to meet. The additional capital raised by the Fundraising will enable the Company to expand the number of projects it undertakes thereby meeting the existing demand for its services.

Outlook

The increasing need for innovation, cost reduction and kinder environmental processes continues to underpin the growing demand for advanced materials. Onto™ is a platform technology that is applicable across a range of applications whilst leveraging a well defined chemical process. This is evidenced in the demand the Company has received which varies from applications in household goods to mass produced electronics products to large-scale industrial manufacturing.

Over the next 18 months the Company has a pipeline of projects and development agreements to undertake and progress with a view to achieving commercial revenues. Whilst not all of these projects will progress through the development pipeline they are each revenue opportunities that have arisen out of a genuine customer need. The completion of the Fundraising brings an increased ability to capitalise on this demand and therefore the outlook for the Company is extremely encouraging.

Marcelo Bravo, Chief Executive commented:

"We are delighted to have been able to raise this additional finance in difficult market conditions, underlining the strength of our technology and business plan. The Fundraising will enable us to take full advantage of the opportunities that are available to us and accelerate the scale up of our business."

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