Fundraise targets £8m for detection technology business

Detection technology company, Kromek, is conducting a conditional placing, subscription and open offer to raise up to £8m before expenses.

The placing has been undertaken with new and existing institutional investors in the business. Kromek directors are participating in the placing and directors’ subscription.

Proceeds will be used to invest in the firm’s technology, to expand sales and marketing for its medical imaging and nuclear security activities including biological-threat detection and to strengthen the balance sheet to facilitate restructuring of the group’s debt.

Rakesh Sharma, chairman of Huddersfield-based Kromek, said: “We are currently experiencing the highest ever levels of customer engagement in both advanced imaging and CBRN (chemical, biological, radiological and nuclear) detection, and there have been notable developments in recent months that have represented the commercial realisation of our strategy.

“This fundraising will help us to capitalise on the substantial opportunities with which we are presented thereby accelerating the commercialisation of our biological-threat detection technology as well as delivery of our advanced imaging and CBRN pipeline.

“Accordingly, the Board recommends all shareholders to vote in favour of the proposals.”

Kromek adds that while it believes current cash levels, supported by cash flow forecasts, could see it trade successfully through FY24, there is limited capacity to capture short-term growth opportunities.

Therefore the company concludes the proceeds of the fundraise will help it accelerate revenue growth and win market share.

Hill Dickinson has acted for Kromek on the fundraise.