Kromek, a worldwide supplier of detection technology focusing on the medical, security screening, and nuclear markets, has raised £13 million from new and existing institutional investors.
The proposed conditional directors’ subscription aims to raise £10 million through the issue of 66,666,667 placings shared at 15 pence per share. The proposed open offer aims to raise £3 million through the issues of up to 20,228,064 open offer shares at 15 pence per share.
The proceedings will be used to de-risk and commercialise bio-security/pathogen detectors and increase the rate of commercialisation.
The company also says that part of the funding will be used to expand sales and marketing for the Group’s nuclear detection and medical imaging activities and to strengthen the balance sheet.
High-performance radiation detection products
Headquartered in Durham, Kromek provides high-performance radiation detection products based on the company’s proprietary CZT technology that significantly enhances imaging quality.
Also, the company is developing technology and products in a new market segment of bio-security for the detection of airborne bacteria and viruses including COVID-19.
The company has operations in the UK (Durham and Huddersfield) and the US (California and Pennsylvania). It sells to 50 countries across the world through a combination of distributors and direct to OEMs.
Rakesh Sharma OBE, Chairman of Kromek, said: “We thank our current and potential new shareholders for their commitment and interest in supporting Kromek. This investment will help us with our next phase of growth and become cash-flow positive and achieve operational profitability. These funds in the short term will enable us to accelerate the commercialisation of our biological threat detection technology and the delivery of our nuclear detection and medical imaging pipeline. As such, the Board recommends all shareholders to vote in favour of the proposals, which will allow us to capitalise on the substantial opportunities with which we are presented.”