Kromek Group PLC (AIM:KMK) said it has agreed a larger borrowing facility of £5.5 million, provided in the form of a secured loan from a major shareholder on more favourable terms than were offered by other potential lenders.
Carrying a fixed interest rate of 9.5% payable quarterly in cash or shares, the refinancing was hailed by chief executive Arnab Basu as being on an interest rate "only 0.4% higher than the current rate on our previous facility".
The loan from long-term shareholder Polymer N2, which owns a 9.6% stake and is the vehicle for former director Dr Graeme Speirs, has a principal repayment date of 27 March 2025, plus an option to extend for a further 12 months.
"As we said at the time of our full year results, we entered the current financial year with a much-strengthened balance sheet and heightened commercial momentum," said Basu. "With this new financing in place, our position is further improved and, accordingly, we remain on track to deliver strong revenue growth and be EBITDA positive for the full year."