Technology group to raise £11m through share placing
RADIATION detection specialist Kromek Group, which has its research and development centre at Huddersfield’s 3M Buckley Innovation Centre, is to raise £11m through share placings.
£9m is being raised through a firm offer, which was over-subscribed, and a further £2m through an open offer.
The AIM-listed company will create 44m shares, which will represent about one-quarter of the enlarged share capital, priced at a 29% discount of 25p.
The proceeds will be used to support further investment in product development, while also increasing its sales and marketing activities and strengthening its balance sheet.
Kromek chief executive Dr Arnab Basu said: “The cash raised from this transaction will assist with the execution of our growth strategy and to leverage our established position and strong partnerships with global OEMs and government agencies.
“With contracted revenues for the year ahead currently totalling 60% of the directors’ expectations for the year, a clear path to capturing revenue opportunities and a stable cost base, the board is confident in the prospects of the business and delivering significant shareholder value.”
The Teeside-based group has also today published its results for the year to April, which show a 36% increase in revenues to £8.1m. Pre-tax losses were £3.1m, which was a 30% improvement on the previous year.
Dr Basu added: “Kromek achieved another year of strong revenue growth. We were adjusted EBITDA positive in the second half reflecting excellent operational progress and increased sales across all our key target markets.
“Our investment in additional sales and marketing resources is bearing fruit as our products gain traction worldwide with strong demand from current and new customers.”
Kromek was advised by Alison Starr and Mallory Green from Eversheds.
