Kromek Group plc (LON:KMK), a leading developer of radiation and bio-detection technology solutions for the advanced imaging and CBRN detection segments, has announced that it has completed a fundraising of £1.7 million through the issue of convertible loan notes to existing and new investors in the Company. The proceeds of the Fundraising will be used to provide additional working capital to minimise any potential supply chain disruption to the delivery of contracts during the year.
The Loan Notes have a term of 18 months (with the Company having the option to extend the majority of the loan notes by three months), are senior in ranking and unsecured. The Loan Notes are convertible at investors option into ordinary shares in the capital of the Company at 15 pence per Ordinary Share, representing a 30% premium to the mid-price of the Company’s share price at close of business on 04 August 2022. The Loan Notes carry a coupon of 8% per annum and have a conversion date of 31 January 2024.
The Loan Note holders have the right to elect to be repaid in whole or in part in Ordinary Shares at the lower of the closing mid-market price on the repayment date, and 15 pence per share.
Based on a Fundraising of £1.7 million, the Loan Notes would, if converted at 15 pence per share, represent approximately 11.3 million Ordinary Shares, amounting to 2.6% of the current issued share capital of Kromek Group.
