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, Directors’ Subscription and Open Offer to raise up to £13.0 million before expenses. The Firm Placing has been undertaken with new and existing institutional investors in the Company.
Highlights
- Proposed conditional Firm Placing and Directors’ Subscription to raise £10.0 million through the issue of 66,666,667 Placing Shares to new and existing institutional and other investors at 15 pence per Placing Share
- Proposed Open Offer to raise up to approximately £3.0 million through the issue of up to 20,288,064 Open Offer Shares to Qualifying Shareholders at 15 pence per Open Offer Share
- The net proceeds of the Transaction will be used to de-risk and commercialise bio-security/pathogen detectors and increase the rate of commercialisation, to expand sales and marketing for the Group’s nuclear detection and medical imaging activities and to strengthen the balance sheet and provide the Group with flexibility to address and capitalise on the current and emerging opportunities
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 to 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 as well as 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.”
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 NETPark, Thomas Wright Way, Sedgefield, TS21 3FD, at 12.00 p.m. on 1 March 2021.
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 www.kromek.com/investor-relations. 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.
Read the full announcement here
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