Kromek in £21.0m fundraising

Kromek Group is raising up to £21.0m through a firm placing and open offer.

The firm placing of 100 million shares at 20p apiece has been undertaken with new and existing institutional investors in the company and was over-subscribed.

The company also announced an open offer to existing shareholders of 5,129,536 shares on the basis of 1 new ordinary share for every 30 existing ordinary shares, at 20p each.

Chairman Sir Peter Williams said: "We are pleased with the support shown by our current shareholders and we welcome new blue-chip institutions to our register.

"The present fundraising will considerably strengthen our balance sheet, underpinning our plans for the sustained growth of the business and supporting increasing commercial activity through the deployment of our proprietary technology.

"Kromek has made good progress this year, in which we achieved a number of important operational targets, enlarging our customer base and strengthening our relationship with our OEM partners.

" This resulted in significant contract wins over the past 18 months which have given us forward visibility over revenues in excess of 85% of market expectations for the current year.

"The Board has great confidence in the future of Kromek and recommends all shareholders to vote in favour of the proposals, which we believe will allow us to deliver increased value to our investors."

At 8:18am: (LON:KMK) Kromek Group PLC share price was 0p at 19.88p