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KMK

-2.40%
GOOD

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

The technology company has issued new shares to satisfy the payment of accrued interest on a loan facility, improving its financial position.

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.

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