Kromek looking to raise £21m via share placing

Kromek looking to raise £21m via share placing
Credit: Shutterstock.com/ Number1411

Kromek, a provider of medical, security and nuclear detection technology, aims to raise up to £21 million via a share placing.

Funds will be used to increase future manufacturing capacity as well as expanding sales and marketing and further strengthening its balance sheet.

The company, which has its R&D base in Huddersfield, plans to raise £20 million via the issue of 80,000,000 Placing Shares to new and existing institutional and other investors at 25 pence per Placing Share.

It aims to raise a further £1 million through the issue of up to 4,008,471 Open Offer Shares to Qualifying Shareholders at 25 pence per Open Offer Share.

Chairman Sir Peter Williams said: “Over the last three fiscal years we have won contracts totalling $138 million across all of our core sectors – reflecting the conversion of our expanding order pipeline and customers increasingly launching next-generation CZT-based products.

“With the growing demand for our flagship products in all our market segments, this fundraise will strengthen our ability to capitalise on these substantial opportunities.

“As such, the Board recommends all shareholders to vote in favour of the proposals, which will enable us to deliver increased value to our shareholders.”