Westminster Group PLC (LON:WSG) is set to raise £1.2mln of new capital through the issue of convertible loan notes.
The injection comes as Westminster is in advanced talks over a large scale long-term Middle East airport security project, and as it advances another large scale airport security project in Asia.
Westminster told investors that the size and complexity of these deals has required extensive pre-contract expenditure, and this new funding will support the group’s working capital.
Cash is also earmarked for post-contract initial spend, and to support the group’s newly established office in mainland Europe.
It highlighted that the funding is supported by its institutional investors.
The loan notes, to be split into 48 tranches with a face-value of £25,000, are being issued to Darwin Capital.
Westminster said the loan notes become eligible for conversion from January 2017 and the notes are redeemable at the end of 2017, though it added that there are certain limitations on conversions throughout the duration.
Separately, the company announced the appointment of James Sutcliffe as its new non-executive director.
Sir Malcolm Ross, Westminster chairman, said: "We are delighted James has agreed to join the board of Westminster and I am sure his experience both of serving on boards of growing and successful companies and of delivery of large scale infrastructure projects will be of great value to our business as we expand and deliver on our significant potential."
Meanwhile, Sutcliffe added: "It is an exciting time to join Westminster Group, not only to work in a sector I am familiar with, but also supporting the executive team with regard to corporate governance and building the management team.
“I look forward to working with the company and supporting the board's strategy to become a substantial international security services company in the infrastructure sector."