IC TIP:
Hold
Bearing this in mind, last month's placing and open offer from Sedgefield-based Kromek (KMK:25p), a radiation detection technology company focusing on the medical, security and nuclear markets and one I have been patiently monitoring for sometime, really caught my eye. The company raised net proceeds of £20m at 20p a share in an oversubscribed placing and open offer not because it needs the money to fund the business - gross cash at the October half-year-end was £3.8m and only £1.7m of a £3m revolving credit facility was drawn down - but because the board wished to bolster the balance sheet to strengthen its position when negotiating contracts with government bodies and OEM customers.