Hardide (LON:HDD) said its Hardide-A surface coating has passed the first set of tests for potential use on some Airbus aircraft components.
Since January 2014 the company has been working to develop its internal systems to standards of the aerospace industry's Nadcap accreditation, and on Tuesday it reported that a technical performance in a laboratory environment has encouraged Airbus to press on with its investigation of Hardide-A's technical performance capabilities.
The company also announced it has conditionally placed 168mln shares at 1.6p each to raise £2.7mln before expenses. Shares in Hardide were trading at 1.97p the day before the placing was announced.
Both new and existing institutional investors have agreed to take the new shares.
The funds from the placing will be used for investment in additional capacity in the UK and a new facility in the US to meet projected demand.