TIDMAMP
RNS Number : 8137N
Amphion Innovations PLC
12 September 2013
Amphion Innovations plc
Amphion Partner Company, Kromek, announces intention to float on
AIM of the London Stock Exchange
London and New York, 12 September 2013- Amphion Innovations plc
(LSE: AMP) ("Amphion" or the "Company"), the developer of medical
and technology businesses, is pleased to announce that Kromek Group
("Kromek" or the "Group"), who designs, develops, and produces
x-ray imaging and radiation detection products using its core CZT
technology for the medical, security screening, and nuclear markets
has today announced its intention to float on the AIM market of the
London Stock Exchange.
Prior to the placing, Amphion holds a 13.3% equity stake in
Kromek.
Richard Morgan, Chief Executive Officer of Amphion and Chairman
of Kromek, said: "Amphion was the first institutional investor to
commit to Kromek in 2005, soon after its formation and spin-out
from the University of Durham. Since then, we have been closely
involved with its development and are delighted to see it is making
the transition to a public company. We believe Kromek has
substantial growth opportunities and this transition to the public
markets should provide the needed capital to accelerate its growth
while deepening and broadening its internal resources and external
reach."
For further information on Amphion please contact:
Amphion Innovations
Charlie Morgan
+1 212 210 6224
Novella Communications
Tim Robertson
+44 (0)20 3151 7008
Panmure Gordon
As Nominated Adviser and Broker
Corporate Finance: Fred Walsh/ Freddy Crossley/ Grishma
Patel
Broking: Adam Pollock/ Charlie Leigh-Pemberton/ Hannah
Woodley
+44 (0)20 7866 2500
The press release issued today by Kromek follows:
This announcement is an advertisement and not a prospectus or an
admission document. This announcement does not constitute or form a
part of, and should not be construed as, any offer or invitation to
sell or issue, or any solicitation of any offer to purchase or
subscribe for, any securities in Kromek Group plc (the "Company")
nor shall it, or any part of it, or the fact of its distribution,
form the basis of, or be relied on in connection with, any contract
or investment decision in relation thereto. This announcement does
not constitute a recommendation regarding securities. Investors
should not subscribe for or purchase any securities referred to in
this announcement except on the basis of information in the
admission document to be published by the Company in due course in
connection with the proposed institutional placing (the "Placing")
and admission of the Ordinary Shares of the Company to the trading
on AIM (the "Admission"), a market operated by London Stock
Exchange plc (the "Admission Document").
Kromek Group plc
("Kromek" or "the Company" or "the Group")
KROMEK ANNOUNCES INTENTION TO FLOAT
PROPOSED PLACING TO RAISE GBP15 MILLION AND ADMISSION TO AIM
Kromek, a UK based technology company, developing high
performance materials and products for radiation detection, today
announces its intention to launch an initial public offering
("IPO"). The Company intends to raise approximately GBP15 million
in a placing of Ordinary Shares (the "Placing") and apply for the
Admission of its Ordinary Share Capital to trading on AIM, a market
operated by the London Stock Exchange plc.
Highlights:
-- Kromek designs, develops and produces x-ray imaging and
radiation detection products using its core CZT technology for the
medical, security screening and nuclear markets. The Group's CZT
based products provide high resolution information on material
composition and structure and are used in multiple applications,
ranging from the identification of cancerous tissues to hazardous
materials, such as explosives, and the analysis of radioactive
materials.
-- In addition to more established liquid phase growth methods,
the Group has developed a patented vapour phase growth technique
capable of producing CZT on a commercial scale. The Directors
believe that it is the only vapour based method developed worldwide
for production of CZT.
-- The Group's business model provides a vertically integrated
technology offering to customers, from the growth of CZT crystals
to finished products or detectors, including software, electronics
and application specific integrated circuits ("ASICs")
-- Customers include some of the world's most well-known OEMs
and research institutions within the medical, security screening
and nuclear markets.
-- The Group has recently entered into a mutually exclusive
multi-year development contract with one of the top four global
OEMs within medical imaging for spectral CT application.
-- The Group has developed a proprietary liquid explosive
detection system for airport security which is ECAC Type-B Standard
3 qualified and for which the Group is targeting significant
European sales following recent legislation mandating all European
airports to screen liquids, aerosols and gels ("LAGs") presented at
airport security with EC approved equipment, effective from 31
January 2014.
-- With over 25 years of research in CZT production, the Group
holds approximately 150 patents granted or pending across its
product portfolio and a significant number of trade secrets which
the Directors believe are unparalleled in the market place.
-- Kromek has a broad range of technical and commercial
experience across the Board and Management Team in Healthcare,
Technology, Security and Defence.
Panmure Gordon (UK) Limited is acting as Nominated Adviser and
Brokerto the Group.
Arnab Basu, Chief Executive Officer of Kromek, commented: "The
demand for Kromek's materials identification technology in the
medical imaging, security screening and nuclear detection markets
is real and immediate. The business is established in its markets
and its hybrid business model is proven. We have contracts in place
with some of the leading OEMs in each of our chosen fields,
including a development contract recently signed with a top four
global OEM in the medical imaging market. Kromek is now seeking to
raise additional capital to accelerate its growth and harvest value
from our platform of technologies.
"Kromek is a well-established British technology business with a
US presence and the opportunity to grow rapidly. To that end,
admitting to AIM is an attractive option providing the Company with
both access to capital and tradable equity should acquisition
opportunities arise in the future. I now look forward to working
with my colleagues and our shareholders to realise the Company's
commercial potential." he added.
Key Strengths of the Group
Established and growing blue-chip customer base
The Group's customer base includes a number of leading global
OEMs and research institutions including three of the leading
global medical OEMs, Northrop Grumman, the European Synchrotron
Radiation Facility the Institute of High Energy Physics Beijing and
EDF. The Group also has existing contracts with US government
agencies.
Proprietary CZT production technology
The Company's UK and US facilities have both been chosen by the
US government for critical materials development/delivery programs
and the Board believesthat the Group is the only organisation to
have developed a patented vapour phase growth technique.
Significant barriers to entry
Customers developing products employing spectral detection of
x-rays and gamma-rays must combine detectors, electronics and
algorithms in their products. The Board believesthe level of
vertical integration offered by the Group combined with the patents
and trade secrets held within the Group, provides customers with
low development costs and fast time to market, acting as
significant barriers to entry for any potential competitor.
Large and growing target market with significant unmet needs
Kromek's products address three key sectors: medical imaging,
security screening and nuclear detection. The Board believes that
there is a growing need within each of these markets for more
precise and timely detection of material composition and structure.
By 2017, the CT scanner market alone is expected to grow by over 35
per cent. to $5.1 billion (source BCC Research).
Significant management experience
The Company's senior management and Directors have extensive
experience working in the medical imaging, security screening, and
nuclear detection sectors, and in developing advanced imaging
technology, bringing together significant knowledge of the
space.
The Group and its technology
Kromek's products are predominately based on CZT and a closely
related material CdTe. CZT is a compound semiconductor made from
the elements cadmium, zinc and tellurium, and has long attracted
strong market interest as the basis for advanced radiation
detectors or imagers due to its ability to absorb radiation
efficiently and directly convert detection to an electronic signal.
CZT is very dense, absorbing x-ray and gamma-ray radiation
effectively, improving the sensitivity of positive detection and
providing the ability to use lower doses in active imaging
applications. The direct generation of an electronic signal
eliminates the need for the two stage process used in
scintillations, providing a significantly improved spacial and
energy resolution. CZT detectors have the additional advantage of
being operational at room temperature, which reduces the cost and
increases the versatility of its implementation, an important
aspect to its commercial application.
CZT's electrical properties allow the material to reveal
sensitive information about the different energies of radiation
being detected. The ability to detect and display different
energies is analogous to detecting different colours of the
spectrum of light. Energy discrimination in x-ray and gamma-ray
detection, combined with additional proprietary Kromek
technologies, can be used to reveal advanced information about an
object or the environment.
The Group's current product offering includes:
Medical Products
The majority of Kromek's medical products are in the form of
detectors or significant subcomponents for OEM Customers for use in
Gamma Ray Spectroscopy, Bone Mineral Densitometry and Lymph Node
Biopsy. In some cases the Company enters into research contracts
for the development of SPECT, PET, BMD and CT technology
components. The Group has recently entered into a mutually
exclusive two year development contract with one of the top four
global OEMs within medical imaging for spectral human CT
application.
The Group also develops custom detector designs or subassemblies
for academic research and OEM customer projects. Additionally, the
Group currently has one complete end user product for sale within
the medical offering, the MARS spectral CT imaging system, through
a partnership with MARS bio imaging, CERN's partner to
commercialise developed technology into medical applications.
Kromek is the exclusive global distributer of the MARS spectral CT
imaging system.
Security Screening
Kromek has developed a liquid explosive detection system for
airport security. The "Identifier", which is a Standard 3 Type-B
certified Bottle Scanner, and is a desktop inspection unit that can
quickly classify LAGs based on multi-spectral analysis of x-rays
using a combination of energy resolving detectors and the Group's
proprietary software. The system is container agnostic and scans,
analyses and classifies liquids with a one button press operation
in under 20 seconds, with a high degree of accuracy and low false
alarm rates. The system has been developed to meet the specific
challenges for the aviation security market in light of recent
European legislation mandating all European airports to screen LAGs
presented at airport security with EC approved equipment, effective
from 31 January 2014.
In addition to the bottle scanner, Kromek Group provides ASICs
and detectors to OEMs for use in third party products for
industrial and security applications.
Nuclear Products
In addition to the medical and security screening products,
Kromek has a portfolio of high-resolution end-user products for
gamma-ray detection and isotope analysis in complex nuclear
environments, differentiated by their sensitivity, high resolution
and small form factor, creating flexibility in deployment.
Non recurring engineering ("NRE")
The Group offers NRE services and has recently secured two major
US defence programs ($2.5 million for small detector development
through its relationship with a major US defence OEM, in addition
been selected for a $1.2 million program with the US Department of
Defense Domestic Nuclear Detection Office for materials for
radiation detection systems for radiological detectors.
Furthermore, in the aviation security sector, Kromek has the
lead role in a EUR1.2 million (24 month) Eurostars collaborative
development program with European partners aiming to resolve issues
regarding advanced materials identification and false alarm rates,
both of which are important issues in aviation security.
Strategy for Growth
The Board's current business strategy comprises the following
aspects:
Increased product integration
Kromek aims to satisfy increasing customer demand for more
integrated and complete solutions. Following the acquisition of eV
Products, the Board plans to fully integrate its products into the
Group's existing offering and develop enhanced solutions. The
Directors believe integration is desired by many customers to avoid
issues with the management of disparate supply chain partners.
Further commercialisation of the core technology
The Group plans to further commercialise its core technology
through new product development, expansion into new geographical
markets with existing products, including the opening of a German
sales office and the continuing development of key strategic
relationships.
Strategic and complementary acquisitions
The Directors believe that Kromek has substantial scope for
organic growth, but that an opportunity exists for consolidation in
the markets and technologies in which the Group is active. The
Directors will consider strategic or complementary acquisitions
which provide increased market access and/or enhance the Group's
vertically integrated technology offering.
Reasons for Admission
The Directors believe that Admission will be an important step
in the Group's development and will assist the Group in its
development by:
-- Providing resources to accelerate commercial growth utilising
the developed technology platform, particularly through additional
sales and marketing capability and by accelerated product
roll-out;
-- Providing a platform for further acquisitions; and
-- Raising its profile in the Group's target markets.
The Placing and Use of Proceeds
The Group plans to use the proceeds from the Placing primarily
to drive growth in the business.
The funds raised will contribute to:
-- Selective research and development, building on the current
portfolio and developing new capabilities where significant future
commercial impact is identified;
-- Expansion of the sales and marketing team;
-- Working capital for growth of sales of existing products.
For further information, please contact:
Kromek Plc Tel: 01740 626060
Arnab Basu, CEO
Derek Bulmer, CFO
Panmure Gordon Tel: 020 7886 2500
As Nominated Adviser and Broker
Corporate Finance
Fred Walsh / Freddy Crossley/ Grishma Patel
Broking
Adam Pollock/ Charlie Leigh-Pemberton/
Hannah Woodley
Tavistock Communications Tel: 020 7920 3150
John West
Matt Ridsdale
Andrew Dunn
The distribution of this announcement and other information in
connection with Admission and the Placing may be restricted by law
in certain jurisdictions and persons into whose possession this
announcement or any document or other information referred to
herein should fall should inform themselves about, and observe, any
such restrictions. Any failure to comply with these restrictions
may constitute a violation of the securities laws of any such
jurisdiction.
This announcement is directed only at (i) persons having
professional experience in matters relating to investments who fall
within the definition of investment professionals in Article 19(5)
of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005 (as amended); (ii) persons in the business of
disseminating information within the meaning of Article 47 of the
Financial Services and Markets Act 2000 (Financial Promotion) Order
2005; or (iii) high net worth bodies corporate, unincorporated
associations and partnerships and trustees of high value trusts as
described in Article 49(2) of the Financial Services and Markets
Act 2000 (Financial Promotion) Order 2005. No other person should
rely on or act upon the contents of this announcement.
This announcement does not constitute or form part of, and
should not be construed as, an offer for sale or subscription or
solicitation of or invitation to make any offer to buy or subscribe
for any securities, and neither this announcement nor any part of
it shall form the basis of or be relied on in connection with or
act as an inducement to enter into any contract or commitment
whatsoever. No reliance may or should be placed by any person for
any purposes whatsoever on the information contained in this
announcement or on its completeness, accuracy or fairness. The
information in this announcement is subject to change.
This announcement may include statements that are, or may be
deemed to be, "forward looking statements". These forward-looking
statements may be identified by the use of forward-looking
terminology, including the terms "believes", "estimates", "plans",
"projects", "anticipates", "expects", "intends", "may", "will" or
"should" or, in each case, their negative or other variations or
comparable terminology, including references to assumptions, or by
discussions of strategy, plans, objectives, goals, future events or
intentions. Forward-looking statements may and often do differ
materially from actual results. Any forward-looking statements
reflect the Company's current view with respect to future events
and are subject to risks relating to future events and other risks,
uncertainties and assumptions relating to the Company's business,
results of operations, financial position, liquidity, prospects,
growth and strategies. Forward-looking statements speak only as of
the date they are made.
Neither Panmure Gordon (UK) Limited, nor any of its directors,
officers, employees, advisers or agents, accepts any responsibility
or liability whatsoever for, or makes any representation or
warranty, express or implied, as to the truth, accuracy or
completeness of the information in this announcement (or whether
any information has been omitted from this announcement) or of any
other information relating to the Company, its subsidiaries or
associated companies, whether written, oral or in a visual or
electronic form, and howsoever transmitted or made available or for
any loss howsoever arising from any use of this announcement or its
contents, or otherwise arising in connection herewith.
Both the Company and Panmure Gordon (UK) Limited expressly
disclaim any obligation or undertaking to update, review or revise
any forward-looking statement contained in this announcement (other
than as required by the AIM Rules or by the rules of any other
applicable securities regulatory authority) whether as a result of
new information, future developments or otherwise.
Panmure Gordon (UK) Limited, which is authorised and regulated
in the United Kingdom by the Financial Conduct Authority, is acting
exclusively for the Company and no-one else in connection with this
announcement, proposed Placing and Admission. Panmure Gordon (UK)
Limited will not regard any other person as its client in relation
to the matters described in this announcement and will not be
responsible to anyone other than the Company for providing the
protections afforded to its clients, nor for providing advice in
relation to the Placing and Admission, the contents of this
announcement or any transaction, arrangement or other matter
referred to herein.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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