North East's Kromek enters into conditional Firm Placing to raise £21m

County Durham-based Kromek, a supplier of detection technology focusing on the medical, security screening and nuclear markets, has announced a conditional Firm Placing and Open Offer to raise up to £21m before expenses.

The Firm Placing has been undertaken with new and existing institutional investors in the company and was over-subscribed.

Proposed conditional Firm Placing to raise £20m through the issue of 80,000,000 Placing Shares to new and existing institutional and other investors at 25 pence per Placing Share.

The net proceeds of the transaction will be used to increase future manufacturing capacity and associated working capital to support the growth of the medical imaging business.

As well as these, it will also be used to expand sales and marketing of the D3S for nuclear radiation detection; and to strengthen balance sheet to provide the Company with flexibility to address and capitalise on opportunities as they emerge.

Sir Peter Williams, chairman of Kromek, said: “Over the last three fiscal years we have won contracts totalling $138m 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.”