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 £1.14 million through the issue of convertible loan notes to existing shareholders in the Company. The net proceeds of the Fundraising will be used to provide additional working capital to mitigate against any potential future supply chain issues. This new fundraising brings the total of new funds raised via convertible loan notes to £2.84 million following the fundraising of £1.7 million announced on 5 August 2022.
The Loan Notes have a term of 18 months (with the Company having the option to extend the loan notes by three months), are senior in ranking and unsecured. If the Loan Notes are repaid other than on the repayment date, they are convertible at the investors option into ordinary shares in the capital of the Company (“Ordinary Shares“) at 15 pence per Ordinary Share, representing a 38% premium to the mid-price of the Company’s share price at close of business on 22 August 2022. The Loan Notes carry a coupon of 8% per annum and have a conversion date of 22 February 2024.
Where the Loan Note holders have the right to elect to be repaid in whole or in part in Ordinary Shares, the conversion price is the lower of the closing mid-market price on the repayment date and 15 pence per share.
Based on a Fundraising of £1.14 million, the Loan Notes would, if converted at 15 pence per share, represent approximately 7.6 million Ordinary Shares, amounting to 1.76% of the current issued share capital of the Company.