Radiation detection firm Kromek proposes to raise £21m

A radiation detection technology company, which as a research base in Huddersfield, 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.

Kromek supplies detection technology focusing on the medical, security screening and nuclear markets.

The company’s Firm Placing aims 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.

In addition, an Open Offer has laos been placed to raise up to approximately £1m through the issue of up to 4,008,471 Open Offer Shares to Qualifying Shareholders at 25 pence per Open Offer Share

Kromek will use the funding to increase future manufacturing capacity and associated working capital to support the growth of the medical imaging business; to expand sales and marketing of the D3S for nuclear radiation detection; and to further strengthen balance sheet.

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.”

Firm Placing and Open Offer will seek approval at the General Meeting of Kromek that is scheduled to be held on 25 February.

This deal has been led by Jon Wharam and Olivia Brown of Eversheds Sutherland.