LONDON (Alliance News) - Advanced surface-coating technology provider Hardide PLC Tuesday said it has raised GBP2.7M via the conditional placing of ordinary shares in the company.
The company placed 167,875,000 new shares new and existing institutional shareholders at 1.6 pence per share. The funding is subject to shareholder approval at the firm's upcoming general meeting.
In a statement, Hardide said the new financing has been raised in response to growing demand for its products, including contracts with the US's General Electric Co and Airbus Group, and will help the company to meet future projected demand.
"We are delighted to have received such strong support from existing and new institutional shareholders. This fundraising will allow Hardide to take advantage of the increasing demand for Hardide coatings from the UK, Europe and North America," said Chief Executive Officer Philip Kirkham.
In a separate statement, Hardide said its Hardide-A surface coating has completed the first stages of testing with Airbus. The French aerospace group is now investigating the technical performance capabilities of Hardide-A for potential use on some specific aircraft components.
"This represents another important step towards possible approval of the coating for use on component parts for Airbus aircraft, and I am encouraged that we are now moving on to the next stage in the process," said Kirkham.
In addition, Hardide is continuing to work on developing internal systems to meet the standards of the aerospace industry's Nadcap accreditation. Kirkham said work towards achieving the accreditation are "progressing well and are on schedule".
Hardide shares were down 11.4% to 1.75 pence on Tuesday, putting the firm among the top five fallers on AIM.