Kromek Group Raises Funds to Repay Loan Facility
Why we think this is good
The equity raise by Kromek Group is a reasonably positive development, with the modest 7.3% discount to the previous closing price and the non-dilutive nature of the raise being the key positives. The purpose of the raise to repay an existing loan facility also strengthens the company's financial position.
Key Points
- Kromek Group issued 13,440,514 new ordinary shares
- Shares issued at a weighted average price of 5.7p, a 7.3% discount to the previous closing price of 6.15p
- Raise used to satisfy payment of accrued interest on a loan facility, improving the company's financial position
Summary
Kromek Group plc has issued 13,440,514 new ordinary shares to satisfy the payment of accrued interest on a loan facility previously announced in September 2023. The new shares were issued at a weighted average price of 5.7p, representing a 7.3% discount to the previous closing price of 6.15p. The raise is relatively small, representing around 2% dilution, and the purpose is to repay the existing loan facility, which improves the company's financial position.