Detection tech creator Kromek has raised £1.7m from new and existing investors through an issue of convertible loan notes.
The Sedgefield firm said it would use the sum as additional working capital to counteract any potential supply chain disruption to the delivery of contracts during the year. In a separate announcement earlier this week it told investors of two new orders in the medical imaging market worth about £618,557 ($751,000).
Kromek's loan notes have a term of 18 months, with the company having the option to extend the majority by three months. At the repayment date, investors have the option to be repaid or convert them into ordinary shares at 15p per ordinary share, representing a 30% premium to the mid-price of the company's share price on August 4.
Read more: County Durham's Steelcraft saved from closure as trade buyer steps in following administration
A few days ago Kromek revealed results to the year to the end of April in which sales jump 16% to £12.1m on the back of growing traction in the nuclear detection market. Previous pre-tax losses of £6.3m were narrowed to £6.1m as the company, which has manufacturing facilities at NETPark in Sedgefield and Pennsylvania, US, highlighted strong revenue growth in advanced imaging, and that it is continuing to ramp up in delivery of a medical imaging contract expected to be worth $58.1m over seven years.
Dr Arnab Basu, CEO of Kromek, said: “We are pleased to report a year of good progress as we delivered on existing contracts and development programmes in both the advanced imaging and CBRN detection segments. Our revenues grew by 16% compared to the previous year as we saw increased commercial traction, particularly in the CBRN segment, and ended the year in a better position than we began it."
READ NEXT:
