14 December 2017 – placing

A placing to raise approximately £25m before fees and expenses has been proposed.  This involves the placing of 11,111,112 new ordinary shares with existing and new institutional investors at a placing price of 225p per share.  The placing will be structured in two parts and it is intended that the proceeds will be used to accelerate commercialisation of the existing portfolio of applications.  There will also be continued investment in polymer science and engineering as well as the creation of intellectual property in support of commercialisation of applications.  Although the company has a bright future and the placing will bolster the balance sheet there are no guarantees of success.  We feel that a SPECULATIVE BUY rating remains appropriate.