Firm Placing and Open Offer to raise up to £21 million


Kromek (AIM: KMK), a worldwide supplier of detection technology focusing on the medical, security screening and nuclear markets, is pleased to announce a conditional Firm Placing and Open Offer to raise up to £21 million before expenses. The Firm Placing has been undertaken with new and existing institutional investors in the Company and was over-subscribed.


  • Proposed conditional Firm Placing to raise £20.0 million through the issue of 80,000,000 Placing Shares to new and existing institutional and other investors at 25 pence per Placing Share.
  • Proposed Open Offer to raise up to approximately £1.0 million through the issue of up to 4,008,471 Open Offer Shares to Qualifying Shareholders at 25 pence per Open Offer Share.
  • The net proceeds of the Transaction will be used to significantly 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 to provide the Company with flexibility to address and capitalise on opportunities as they emerge.

Sir Peter Williams, Chairman of Kromek, said: “Over the last three fiscal years we have won contracts totalling $138 million 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.”

General Meeting

The Transaction is conditional, inter alia, upon Shareholder approval at the General Meeting of the Company that is scheduled to be held at Luther Pendragon, 48 Gracechurch Street, London EC3V 0EJ, at 12.00 p.m. on 25 February 2019.

A Circular containing the Notice of the General Meeting to approve, amongst other things, resolutions relating to the allotment of the New Ordinary Shares, is expected to be published by the Company and sent to Shareholders later today, together with a Form of Proxy and, in the case of Qualifying Shareholders, the Application Form. A copy of the Circular and Form of Proxy will be available on the Company’s website at Your attention is drawn to the letter from the Chairman of the Company that is set out in the Circular and which contains, amongst other things, the Directors’ unanimous recommendation that Shareholders vote in favour of the Resolutions to be proposed at the General Meeting.

Capitalised terms used in this announcement have the meanings given to them in the Circular.

Firm Placing and Open Offer and Notice of GM (PDF download).

Kromek General Meeting Circular February 2019. (PDF download).

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