Kromek Group PLC (AIM:KMK) proposed raising £7mln from a placing and subscription and up to £1mln more from an open offer in order to invest to speed commercialisation of its detector technology and strengthen the balance sheet.
The group said the proceeds would be invested in improving manufacturing of its cadmium zinc telluride (CZT) detector technology, as well as sales and marketing into the medical imaging and security markets.
At a price of 5p per share, the proposed placing and subscription will see 140,000,000 shares issued to new and existing investors, with the proposed open offer for qualifying shareholders at the same price.
"We are currently experiencing the highest ever levels of customer engagement in both advanced imaging and CBRN detection, and there have been notable developments in recent months that have represented the commercial realisation of our strategy," said chairman Rakesh Sharma.
He said the recent seven-year agreement with a top-tier manufacturer has "solidified our market leadership position in medical imaging as a leading independent supplier of CZT".
"This fundraising will help us to capitalise on the substantial opportunities with which we are presented thereby accelerating the commercialisation of our biological-threat detection technology as well as delivery of our advanced imaging and CBRN pipeline. "
The placing and subscription are conditional on shareholder approval at a general meeting scheduled for 25 May.