Radiation tech company Kromek has raised £1.14m from shareholders - its second fundraise in a month - to counter supply chain struggles.
The Sedgefield firm, a leading developer of radiation and bio-detection technology solutions, said it has completed the fundraise through the issue of convertible loan notes to existing shareholders in the company. In a stock market note the firm said the proceeds will be used to provide additional working capital to mitigate against any potential future supply chain issues.
This new fundraising brings the total of new funds raised via convertible loan notes to £2.84m, following the fundraising of £1.7m announced on August 5. The loan notes have a term of 18 months, with the company having the option to extend the loan notes by three months, are senior in ranking and unsecured.
Read more: Newcastle insurer Lycetts doubles profit despite challenging year
If the loan notes are repaid other than on the repayment date, they are convertible at the investor's option into ordinary shares in the capital of the company at 15p per ordinary share, representing a 38% premium to the mid-price of the company’s share price at close of business on August 22.
If converted, the notes would represent approximately 7.6 million ordinary shares, amounting to 1.76% of the current issued share capital of the company.
Earlier this month the NETPark business, which supplies its products to customers around the world in the medical, security and industrial sectors, posted a 16% jump in sales to £12.1m but said supply chain issued had pushed back completion dates.
As a result, it It posted an Ebitda loss of £1.2m in the year ended April 30, but this was reduced from the previous year’s loss of £1.7m.
READ NEXT
North East shopping centre snapped up by local authority in moves to to boost regeneration
430 jobs to go at Tyneside fruit factory Orchard House Foods amid soaring costs
Sunderland snack bar maker Fullwell Mill sold in pre-pack administration deal
- Britishvolt work is limited for six months but company insists Northumberland factory is on track
