Further to the Group’s announcement of 6 September 2023, Kromek (AIM: KMK), a leading developer of radiation and bio-detection technology solutions for the advanced imaging and CBRN detection segments, is pleased to announce that it has completed the refinancing of its borrowing facility with the signing of a new £5.5m secured term loan (the “New Facility”). The New Facility is being provided by Polymer N2 Ltd (“Polymer”), a significant shareholder in the Company that is an investment vehicle controlled by Dr Graeme Speirs.
The New Facility has a repayment date for the principal sum of 27 March 2025, with an option to extend for a further 12 months. It carries a fixed interest rate of 9.5%, which is payable quarterly, and Kromek has the option to pay the interest through the issue of new ordinary shares of 1p each in the Company (“Ordinary Shares”) at the trailing 10-day volume weighted average price of the Company’s Ordinary Shares on the date that payment falls due.
Polymer and Dr Speirs hold an aggregate of 57,826,457 Ordinary Shares in Kromek, representing 9.6% of the issued share capital of the Company. The Company commenced discussions to replace the existing facility in early 2023 and ran a competitive process to source alternative debt providers. The overall terms offered by Polymer were more competitive than those received from any other potential lender.
Arnab Basu, CEO of Kromek, said: “We are pleased to have completed this financing process and to have secured an enlarged debt facility on more favourable terms than the alternatives on offer. We are thankful for this support from our major long-term shareholder who has provided this loan at an interest rate that is only 0.4% higher than the current rate on our previous facility. As we said at the time of our full year results, we entered the current financial year with a much-strengthened balance sheet and heightened commercial momentum. With this new financing in place, our position is further improved and, accordingly, we remain on track to deliver strong revenue growth and be EBITDA positive for the full year.”