Durham firm Kromek to raise £21m through share placing
County Durham radiation detection technology firm Kromek has announced its plans to raise £21m through a share placing, which will allow the company to strengthen its balance sheet.
The Sedgefield-based business, which focuses on developing tech that can be used in the medical, security and nuclear markets.
The share sale – consisting of a firm placing and an open offer with new and existing institutional investors in the company – has been over-subscribed, the firm announced on the stock market.
Sir Peter Williams, chairman of Kromek, commented: “We are pleased with the support shown by our current shareholders and we welcome new blue-chip institutions to our register.
“The present fundraising will considerably strengthen our balance sheet, underpinning our plans for the sustained growth of the business and supporting increasing commercial activity through the deployment of our proprietary technology.”
The share sale will see a firm placing of 100m ordinary shares at the offer price of 20p per ordinary share.
Investors who already own shares in the business will be able to access an open offer, which allows one new ordinary share to be purchased for every 30 already owned. There will be 5,129,536 offer shares available on at 20p each.
Mr Williams added: “Kromek has made good progress this year, in which we achieved a number of important operational targets, enlarging our customer base and strengthening our relationship with our OEM partners.
“This resulted in significant contract wins over the past 18 months which have given us forward visibility over revenues in excess of 85% of market expectations for the current year.
“The board has great confidence in the future of Kromek and recommends all shareholders to vote in favour of the proposals, which we believe will allow us to deliver increased value to our investors.”
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