REG - Kromek Group PLC - Financing Update

KromekAnnouncement

28/09/2023 07:00

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RNS Number : 9178N  Kromek Group PLC  28 September 2023

28 September 2023

 

Kromek Group plc

("Kromek" or the "Company" or the "Group")

 

Financing Update

 

Further to the Group's announcement of 6 September 2023, Kromek (AIM: KMK), a
leading developer of radiation and bio-detection technology solutions for the
advanced imaging and CBRN detection segments, is pleased to announce that it
has completed the refinancing of its borrowing facility with the signing of a
new £5.5m secured term loan (the "New Facility"). The New Facility is being
provided by Polymer N2 Ltd ("Polymer"), a significant shareholder in the
Company that is an investment vehicle controlled by Dr Graeme Speirs.

 

The New Facility has a repayment date for the principal sum of 27 March 2025,
with an option to extend for a further 12 months. It carries a fixed interest
rate of 9.5%, which is payable quarterly, and Kromek has the option to pay the
interest through the issue of new ordinary shares of 1p each in the Company
("Ordinary Shares") at the trailing 10-day volume weighted average price of
the Company's Ordinary Shares on the date that payment falls due.

 

Polymer and Dr Speirs hold an aggregate of 57,826,457 Ordinary Shares in
Kromek, representing 9.6% of the issued share capital of the Company. The
Company commenced discussions to replace the existing facility in early 2023
and ran a competitive process to source alternative debt providers. The
overall terms offered by Polymer were more competitive than those received
from any other potential lender.

 

Arnab Basu, CEO of Kromek, said: "We are pleased to have completed this
financing process and to have secured an enlarged debt facility on more
favourable terms than the alternatives on offer. We are thankful for this
support from our major long-term shareholder who has provided this loan at an
interest rate that is only 0.4% higher than the current rate on our previous
facility. 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. 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."

 

 

For further information, please contact:

 

 Kromek Group plc
 Arnab Basu, CEO                                                        +44 (0)1740 626 060

 Paul Farquhar, CFO

 Cavendish Capital Markets Limited (Nominated Adviser and Broker)        
 Geoff Nash/Giles Balleny/Seamus Fricker - Corporate Finance            +44 (0)20 7220 0500

 Tim Redfern/Charlotte Sutcliffe - ECM

 Michael Johnson/Tamar Cranford-Smith - Sales

 Gracechurch Group (Financial PR)
 Harry Chathli/Claire Norbury/Henry Gamble                              +44 (0)20 4582 3500

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance
with the Company's obligations under Article 17 of MAR. The person responsible
for making this announcement on behalf of the Company is Paul Farquhar, Chief
Financial Officer.

 

Kromek Group plc

 

Kromek Group plc is a leading developer of radiation detection and
bio-detection technology solutions for the advanced imaging and CBRN detection
segments. Headquartered in County Durham, UK, Kromek has manufacturing
operations in the UK and US, delivering on the vision of enhancing the quality
of life through innovative detection technology solutions.

 

The advanced imaging segment comprises the medical (including CT and SPECT),
security and industrial markets. Kromek provides its OEM customers with
detector components, based on its core cadmium zinc telluride (CZT) platform,
to enable better detection of diseases such as cancer and Alzheimer's,
contamination in industrial manufacture and explosives in aviation
settings.

 

In CBRN detection, the Group provides nuclear radiation detection solutions to
the global homeland defence and security market. Kromek's compact, handheld,
high-performance radiation detectors, based on advanced scintillation and
solid-state readout technology, are primarily used to protect critical
infrastructure, events, personnel and urban environments from the threat of
'dirty bombs'.

 

The Group is also developing bio-security solutions in the CBRN detection
segment. These consist of fully automated and autonomous systems to detect a
wide range of airborne pathogens.

 

Kromek is listed on AIM, a market of the London Stock Exchange, under the
trading symbol 'KMK'.

 

 

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