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Oxford Adv Surfaces (OXA)

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Monday 31 December, 2007

Oxford Adv Surfaces

Admission to AIM

Oxford Advanced Surfaces Group PLC
31 December 2007

Oxford Advanced Surfaces Group Plc
31 December 2007

          OXFORD ADVANCED SURFACES GROUP PLC ('OASG' or the 'Company')

                           LONDON STOCK EXCHANGE PLC


Following the completion of the reverse takeover the details of which were
announced on 12 December 2007, the ordinary shares of OASG (formerly called
Kanyon Plc) have this morning been admitted to trading on AIM with the ticker
symbol OXA.  OASG has developed technology that enables the modification of the
surface properties of a range of materials in order to increase and diversify
their applications and functionalities. The technology is based on research that
commenced over ten years ago at the Department of Chemistry at the University of
Oxford and can be applied to inert surfaces in order to modify their surface
properties. The Subscription and Acquisition each became unconditional upon

Admission Statistics

Number of Existing Ordinary Shares (following 
consolidation on a 1 for 10 basis)                                   88,384,131
Number of Consideration Shares issued                                77,539,907
Number of Subscription Shares issued                                 12,000,000
Subscription Price                                                     25 pence
Number of New Ordinary Shares in issue on Admission                 177,924,038
Gross proceeds of the Subscription available to the Company        £3.0 million
Market capitalisation immediately following Admission at the 
Subscription Price                                               £44.50 million
TIDM Symbol                                                                 OXA

Percentage of Enlarged Issued Share capital represented by:
Existing Ordinary Shares                                                49.68 %
Consideration Shares                                                    43.58 %
Subscription Shares                                                      6.74 %

Zimmerman Adams International Limited is acting as the Nominated Adviser to the
Company and Hichens, Harrison & Co. Plc as the Broker to the Company.

Definitions used in this announcement will have the same meanings, unless the
context requires otherwise, as those used in the AIM admission document of the
Company dated 12 December 2007.

Marcelo Bravo, CEO, commented

'We are delighted that OASG has successfully listed on AIM today. We believe
that Admission to AIM and the funds available to the company will provide an
ideal platform for future growth of the Company.  OASG has a strong team and we
look forward to the future development of the Company '

OASG Strategy

The strategy is to become an advanced materials and technology solutions company
with business units across a range of markets. The board of OASG have identified
three priority markets for the application of the technology, which are:

  1.     Electronics (including PCB's, plastic electronics, electromechanical 
         devices and flat displays);

  2.     Industrial specialties (including specialty fibres, textiles, 
         laminates and composites); and

  3.     Life sciences/health care markets (including sterile surfaces, 
         separation media and microarrays).

The board's focus will be on both exploiting the technology in the markets
described above as well as developing further applications of the Technology in
areas such as photovoltaics through Solar Labs plc (another subsidiary in the
group), biomedical materials and specialised filtration media.

The board plans to establish three distinct business units in the above markets
within OASG and to recruit commercial directors to run and develop these
business units. In addition, it is the intention of the Continuing Board to
continue to seek to establish opportunities in-house or through external
collaborations in markets such as photovoltaics and membranes for separation and
filtration processes.

It is expected that OASG will initially generate development fees from these
partnerships before ultimately licensing its Technology for commercial use. The
board believe such partnering arrangements will enable OAS to leverage the
relevant partners expertise in particular sectors as well as their market access
resulting in lower risk for OAS and a faster route to market.

OASG does not, however, intend to manufacture chemicals or materials on a large
scale itself. Instead, its strategy will be to enter into co-development
arrangements with leading companies with applications in high value markets as
well as leading speciality chemical companies. Where appropriate, OASG will
enter into contract manufacturing arrangements.

To support the business and technology development needs, it is the board's
intention to establish a base research and design capability with both an
organic chemistry synthesis team and several focused application development
teams in electronics, speciality industrials and life sciences.

OASG will also explore opportunities to establish various external
collaborations with academics both at the University of Oxford and elsewhere to
develop further Intellectual Property Rights in these areas. The Enlarged Group
will use the experience of the Continuing Board in the development of
collaborations with academic research institutions to commercialise intellectual

OASG Technology

OASG' technology is a coating technology that exploits a reactive type of
molecule, known as a carbene. The technology controls the reactivity of the
molecule so that it can be applied to inert surfaces in order to modify their
surface properties. The technology is a platform technology that permits the
modification of a range of materials to deliver a range of functionalities, thus
creating new opportunities in advanced materials.

The coatings are applied to surfaces in a multi-step process. Firstly, the
coating is rolled, dipped, painted or sprayed onto the surface and, secondly,
the coating is then cured by heat or UV resulting in a chemically attached
coating. OAS is working to further develop the technology to enable it to
deliver precise patterns of surface functionality and to deliver more than one
functionality on a substrate.

The technology enables a range of materials to be modified including:

   •   natural polymers such as cotton and wool;

   •   inert synthetic polymers such as polypropylene, PET and polyimide; and

   •   inorganic surfaces such as glasses, alumina, diamond, graphite and other 
       allotropes of carbon.

Principal applications of the technology

OAS' initial strategy has been to explore a range of industries and, since
incorporation in September 2006, it has had contact with over sixty companies
throughout the world. Following on from this, OAS has signed confidentiality
agreements with approximately thirty companies to proceed to advanced
discussions regarding the technology. This has resulted in OAS signing
agreements with seven companies for co-development projects which are currently
revenue-earning. Moreover, OAS is discussing a number of proposals with various
potential customers and conducting several 'preliminary proof of concept'
evaluations with a view to embarking on development programmes in the near

OAS will initially focus on three areas of application following its testing of
the technology in potential markets it has investigated during the first year of
its commercial operations. They are not, however, in the board's opinion,
representative of the breadth and scope of the applicability of the technology.

As OAS scales its business development activities, it is the board's intention
that there will be a growth in the number of projects looking at more
functionalities and substrate materials in differing areas of application. The
board has identified the following technological areas which they intend to
initially focus OAS activities in exploiting:

1. Tailored Wetting Properties

The wettability (hydrophillicity, hydrophobicity, oleophillicity and
oleophobicity) of a material or the degree to which a material can be wetted by
a liquid is an important function for OAS' customers in a number of applications
currently being developed by OAS.

The Technology can be used to tailor the wettability of a range of materials
including low surface energy substrates such as fluoropolymers. OAS is currently
developing its Technology in this area as follows:

   •  the development of coatings to provide hydrophillicity to fluoropolymers 
      for use in the electronics industry as well as for use in the medical 
      implant industry;

   •  the development of treatments to help disperse particulates such as 
      pigments; and

   •  the development of coatings to provide hydrophobicity to substrate 
      materials used in the electronic displays industry and the inkjet device

2. Adhesion Promotion

The technology can be used to promote chemical adhesion acting as a primer for
existing adhesives, bonding agents or radiation cured coatings as well as
facilitating the incorporation of particles at the interface between materials
to increase adhesion.

OAS is currently using the technology to develop coatings:

   •  to enhance the adhesion between various low surface energy polymers to 
      protective coatings; and
   •  to metallise ('adhere metal') to various substrates including glass, 
      silica and polymers for application in electronics and the decorative 
      automotive industry.

3. Biocidal Activity

OAS has designed a coating using its technology which permits the release of
hydrogen peroxide, an environmentally benign broad spectrum biocide which can be
regenerated by treating with a solution of hydrogen peroxide. The board believes
this application of the technology could be used in consumer and healthcare
markets as well as in water and air purification.


Marcelo Bravo  - Oxford Advanced Surfaces Group Plc               01865 854 807
Michael Bretherton- Oxford Advanced Surfaces Group Plc            020 7099 7266

David Galan/Jonathan Evans  - Zimmerman Adams International 
Limited (Nominated Adviser)                                       020 7060 1760


Zimmerman Adams International Limited ('ZAI'), which is authorised and regulated
in the United Kingdom by the Financial Services Authority, is acting as
nominated adviser exclusively for the Company and for no-one else in connection
with the matters the subject of this announcement and will not be responsible to
any person other than the Company for providing the protections afforded to its
customers or for advising any other person in connection with such matters.

The duties and responsibilities of ZAI as the Company's nominated adviser under
the AIM Rules for nominated advisers are owed solely to London Stock Exchange
Plc and are not owed to the Company or to any director or proposed director or
shareholder of the Company or anyone else. ZAI is not making any representation
or warranty, express or implied, as to the accuracy or completeness of the
contents of this announcement.

This announcement does not constitute an offer of, or the solicitation of an
offer to buy or subscribe for, the securities referred to herein nor shall it or
any part of it form the basis of or be relied on in connection with or act as an
inducement to enter into any contract of commitment whatsoever to any person in
any jurisdiction to whom or in which such offer or solicitation is unlawful and,
in particular, is not for release, publication or distribution in or into the
United States. The securities referred to herein have not been and will not be
registered under the United States Securities Act of 1933, as amended (the 'US
Securities Act'), and may not be offered or sold within the US or for the
account or benefit of a US person except in certain transactions exempt from the
registration requirements of the US Securities Act.

The securities referred to herein have not been and will not be registered under
the applicable securities laws of any province or territory of Australia,
Canada, Japan, the Republic of Ireland or South Africa and may not be offered or
sold within Australia, Canada, Japan, the Republic of Ireland or South Africa or
to, or for the account or benefit of citizens or residents of Australia, Canada,
Japan, the Republic of Ireland or South Africa.

The distribution of this announcement in certain jurisdictions may be restricted
by law, and persons into whose possession this announcement, or any document
referred to herein, comes should inform themselves about, and observe, any such
restrictions. Any failure to comply with these restrictions may constitute a
violation of the securities or other laws of any such jurisdiction.

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