Surface Transforms : Result of Over Subscribed Open Offer

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

1 May 2020

Surface Transforms plc

("Surface Transforms" or the "Company")

Open Offer Excess

Surface Transforms plc (AIM:SCE) announced at 07:00 a.m. on 1 May 2020 that applications had been received in respect of the Open Offer of 9 April 2020 totalling 10,906,466 Open Offer Shares (equivalent to approximately £1.4 million) and representing a take-up of 473 per cent.. Pursuant to the terms of the Open Offer, this had to be scaled back to 2,307,692 Open Offer Shares, raising gross proceeds of £0.3 million. The Company also announced that it was exploring various options to satisfy this additional excess demand.

The Board greatly appreciates this excess demand from its shareholders, and would welcome the opportunity to allot shares to those shareholders who applied for an excess of their entitlement in the Open Offer but whose applications were scaled back. Accordingly, the Board proposes that the Open Offer is increased such that a further 5,384,616 Open Offer Shares of the total applications for 10,906,466 Open Offer Shares be issued. This will increase the gross proceeds raised under the Open Offer to £1.0 million.

The Company is therefore writing to this limited number of shareholders and asking them to inform the Company if they do not wish to continue with their Open Offer application. The Company is asking shareholders to reply by [•] May 2020 [to whom do they contact?] and that if no reply is received the Company will assume that the shareholder has accepted the proposal and confirmed their wish to apply for new Ordinary Shares as aforementioned and will allot the shares by using the funds held by the Registrars, with the remaining funds being returned to the shareholder.

The issue of the additional 5,384,616 Open Offer Shares is conditional upon, amongst other things, approval by Shareholders at a General Meeting of the Company, expected to be held at • at 11.00 a.m. on [•] May 2020. The Circular, together with a notice of the General Meeting, will be posted to Shareholders shortly.

David Bundred, Chairman commented:

"As I noted yesterday, we are delighted with the strong support from all our shareholders who have participated in this placing and open offer. For a host of reasons, but not least a defensive plan should the Company's application for a CBILS loan not be successful, we have taken this opportunity to accept, subject to shareholder approval, a proportion of the excess applications received under the open offer. Assuming shareholders approve the increase in the open offer, the Company will have a considerably stronger balance sheet that would otherwise be the case, and can look to the future with optimism."

The person responsible for arranging the release of this announcement on behalf of the Company is Michael Cunningham, Finance Director.

For further information, please contact:

Surface Transforms plc.

Kevin Johnson, CEO

[phone]

David Bundred, Chairman

Michael Cunningham, Finance Director

Cantor Fitzgerald Europe (Nomad & Joint Broker)

David Foreman, Michael Boot, Adam Dawes (Corporate Finance)[phone] Caspar Shand Kydd, Maisie Atkinson (Sales)

finnCap Ltd (Joint Broker)

Richard Chambers (ECM)[phone] Ed Frisby, Giles Rolls (Corporate Finance)