Kromek Group PLC (AIM:KMK) said it completed a fundraising of £1.14mln through the issue of convertible loan notes to its existing shareholders.
The net proceeds will be used for working capital to mitigate against any potential future supply chain issues, the radiation and bio-detection technology specialist said in a statement.
This brings the total of new funds raised via convertible loan notes to £2.84mln following the £1.7mln fundraising announced on 5 August this year.
READ: Kromek Group completes £1.7mln fundraising
The senior ranking, unsecured loan notes have a term of 18 months, with the company having the option to extend the notes by three months.
If they are repaid other than on the repayment date, the loan notes are convertible at the investor’s option into shares at 15p each, which is a 38% premium to the mid-price of the shares on 22 August.
The loan notes carry a coupon of 8% per year and have a conversion date of 22 February 2024.
If converted, the loan notes from the £1.14mln fundraising would represent around 7.6mln shares, amounting to 1.76% of the company’s equity.