Radiation tech firm Kromek has announced plans to tap up investors for up to £8m to plough into the business.
The Durham based business, which develops radiation and bio-detection technology solutions for the advanced imaging and CBRN detection segments, announced the conditional placing, subscription and open offer, which it hopes will bring in up to £8m before expenses. The placing has been undertaken with new and existing institutional investors in the company and Kromek directors are participating in the placing and directors’ subscription.
The move to raise funds includes a proposed placing and subscription to raise £7m through the issue of 140,000,000 placing shares to new and existing investors at 5p per placing share, and an open offer to raise up to approximately £1m through the issue of up to 20,564,372 open offer shares to qualifying shareholders at 5 per open offer share.
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The firm said the net proceeds of the transaction will be used for development and working capital for computed tomography, to invest in productivity and efficiency of CZT manufacturing, to expand sales and marketing for the group’s medical imaging and nuclear security activities including biological-threat detection and to strengthen the balance sheet to facilitate the restructuring of the group’s debt.
Rakesh Sharma OBE, chairman of Kromek, said: “We are currently experiencing the highest ever levels of customer engagement in both advanced imaging and CBRN detection, and there have been notable developments in recent months that have represented the commercial realisation of our strategy. In particular, our seven-year agreement with a Tier 1 OEM has solidified our market leadership position in medical imaging as a leading independent supplier of CZT.
“This fundraising will help us to capitalise on the substantial opportunities with which we are presented thereby accelerating the commercialisation of our biological-threat detection technology as well as delivery of our advanced imaging and CBRN pipeline. Accordingly, the Board recommends all shareholders to vote in favour of the proposals.”
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