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HALO X-ray Secures Investment to Accelerate its Disruptive X-ray Diffraction Technology for Security Screening and Contraband Detection

Published: 12th September 2023

UKI2S > News > HALO X-ray Secures Investment to Accelerate its Disruptive X-ray Diffraction Technology for Security Screening and Contraband Detection

Investments in HALO X-ray Technologies will support regulatory approval of the first fieldable XRD system in checkpoint security operations and deployments to key airport screening operations.

Nottingham UK – September 06, 2023 – HALO X-ray Technologies Ltd, a developer of next-generation X-ray diffraction (XRD) technology for aviation and security screening applications, announced today that the Innovation Science & Seed Fund (UKI2S), a venture fund science and technology focused venture capital fund, led a £2M Series A investment funding round alongside Agilent Technologies Inc. and the Midlands Engine Investment Fund (MEIF) through the MEIF West Midlands Equity Fund, managed by venture capital firm Midven to advance HALO’s XRD screening solutions.

Simon Godber, HALO’s Chief Executive Officer said:

“We are thrilled to have the support of market leader Agilent to join with UKI2S and Midven,”

“This investment will support HALO’s principal goal to substantially reduce false alarm rates for global checkpoint screening systems, leading to faster passenger throughput and significant reductions in airport operational costs. Agilent’s investment along with its product development and manufacturing expertise in global security and field detection markets will help us deliver critical new screening capability to address aviation security and international customs and borders screening challenges. We welcome the support of UKI2S and the continued backing from the MEIF through Midven, to help drive the business through these next important periods of rapid growth”.

“HALO’s innovative XRD platform enables through-barrier identification of chemicals and materials and makes this long-promised capability available, so it can be used in a wide range of security and contraband detection missions”

Andy Muir, Investment Director for UKI2S and Future Planet Capital Group said:

“Investment in innovation is critical to the future of global security, which is why we are delighted to invest in HALO from our Defence and Security portfolio within the UK Innovation & Science Seed Fund. Our part in this raise is not only to invest, but also to identify and amplify co-investment into organisations that have scalable opportunity via dual-use capabilities. Congratulations to the whole team in this vital next stage of HALO's growth.”

Andy Bard, Portfolio Manager at Midlands-based venture capital firm, Midven, part of the Future Planet Capital Group, said:

“We are pleased to continue to invest in HALO’s effective XRD platform and operationalise the advancements the HALO team has achieved that make XRD a high value and deployable solution. Our investment will support key deployments to European airport screening operations and add sales and logistical support for installations in Europe and the US”.

The Midlands Engine Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.

About HALO X-ray Technologies (HALO)

HALO is commercializing patented X-ray diffraction technology originally pioneered by Professor Paul Evans at Nottingham Trent University and Professor Keith Rogers at Cranfield University.

HALO innovations have allowed X-ray diffraction, for the first time, to be used to scan and identify materials at commercially viable speeds to meet the requirements for real-world applications, such as security, medical, and industrial process control.

For more information about HALO, please visit https://www.haloxray.com.

Halo-xray

About UKI2S

UKI2S is a national seed investment fund that nurtures innovative businesses to leverage private investment and grow jobs, recycling profits from the realisation of our investments into the next generation of impactful UK companies.

We invest in innovations emerging from the UK’s publicly funded science and knowledge base. We specialise in engineering, biology, defence & security, fusion energy, to facilitate sustainable growth, enhance the health and security of society, improve productivity, and deliver economic gains emerging from UK’s public funding portfolio. The fund is backed by UK Research and Innovation, Ministry of Defence, the Department of Science Innovation and Technology, the UK Atomic Energy Authority (UKAEA) and other public bodies. It is independently managed by Future Planet Capital (Ventures) Ltd, the impact-led, global venture capital firm.

About Midven

For more than 30 years, leading Birmingham-based venture capital firm Midven has been supporting Midlands SMEs, investing more than £90m into the region and raising over £200m co-investment into its portfolio.

Midven’s ‘more than money’ approach helps to build strong and successful companies and support businesses every step of the way. Midven continues to extend its reach to invest in the Midlands’ most ambitious entrepreneurs through its appointment to manage the £55 million equity portion of the Midlands Engine Investment Fund (MEIF), as well as the launch of the £25 million West Midlands Co-Investment Fund. Midven was acquired by Future Planet Capital in April 2021.

For more information about Midven, please visit https://www.midven.co.uk.

About the Midlands Engine Investment Fund (MEIF)

The Midlands Engine Investment Fund will invest in Debt Finance, Small Business Loans, Proof-of-Concept and Equity Finance funds, ranging from £25,000 to £2m, specifically to help small and medium sized businesses secure the funding they need for growth and development.

The Midlands Engine Investment Fund is operated by British Business Financial Services Limited, wholly owned by British Business Bank, the UK’s national economic development bank. Established in November 2014, its mission is to make finance markets for smaller businesses work more effectively, enabling those businesses to prosper, grow and build UK economic activity.

The Midlands Engine Investment Fund is supported by the European Regional Development Fund, the European Investment Bank, the Department for Business, Energy and Industrial Strategy and British Business Finance Limited, a British Business Bank group company.

The MEIF covers the following LEP areas: Black Country, Coventry & Warwickshire, Greater Birmingham & Solihull, Stoke-on-Trent and Staffordshire, The Marches, and Worcestershire in the West Midlands; and Derby, Derbyshire, Nottingham & Nottinghamshire (D2N2) Greater Lincolnshire, Leicester & Leicestershire, and South-East Midlands in the East and South-East Midlands.

The project is receiving up to £78,550,000 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The programme will continue to run until the end of 2023.

The Ministry for Housing, Communities and Local Government is the Managing Authority for the European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit www.gov.uk/european-growth-funding.

The European Investment Bank is providing £122,500,000 to support the Midlands Engine Investment Fund. This follows backing for the Northern Powerhouse in 2017 and backing for the newly launched North East Fund. For further information visit www.eib.org

The funds in which Midlands Engine Investment Fund invests are open to businesses with material operations in or planning to open material operations in the West Midlands and East & South-EastMidlands.

The British Business Bank has published the Business Finance Guide (in partnership with the ICAEW, and a further 21 business and finance organisations). The guide, which impartially sets out the range finance options available to businesses and provides links to support available at a regional level, is available at https://thebusinessfinanceguide.co.uk.

About the British Business Bank

The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to make finance markets for smaller businesses work more effectively, enabling those businesses to prosper, grow and build UK economic activity. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.

The British Business Bank’s core programmes support nearly £8bn of finance to almost 94,800 smaller businesses. Since March 2020, the British Business Bank has also launched four new Coronavirus business loan schemes, delivering almost £73bn of finance to around 1.6m businesses. As well as increasing both supply and diversity of finance for UK smaller businesses through its programmes, the Bank works to raise awareness of the finance options available to smaller businesses. The British Business Bank Finance Hub provides independent and impartial information to businesses about their finance options, featuring short films, expert guides, checklists and articles from finance providers to help make their application a success.

In light of the coronavirus pandemic and EU Exit, the Finance Hub has expanded, and it now targets a wider business audience. It continues to provide information and support for scale-up, high growth and potential high growth businesses, but now provides increased content, information, and products for businesses in survival and recovery mindsets. The Finance Hub has been redesigned and repositioned to reflect this, during this period of economic uncertainty.

British Business Bank plc is a public limited company registered in England and Wales, registration number 08616013, registered office at Steel City House, West Street, Sheffield, S1 2GQ. It is a development bank wholly owned by HM Government. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such. They are not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). A complete legal structure chart for the group can be found at https://www.british-business-bank.co.uk.

UKI2S

© UKI2S and Future Planet Capital (Ventures) Limited. All Rights Reserved. UKI2S is managed by Future Planet Capital (Ventures) Limited which is Authorised and Regulated in the UK by the Financial Conduct Authority FRN 148549. Registered in England and Wales. Company Number 2500898. Registered Address: Future Planet Capital (Ventures) Limited, t/a Midven, 1 Scott Place, 2 Hardman Street, Manchester, M3 3AA.

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