DURHAM Scientific Crystals has raised about £3.5m in its latest round of fundraising and is poised for further growth.

The Durham University spin-out company, based at Netpark, in Sedgefield, County Durham, secured the cash from shareholders - including partner company Amphion Innovations, which holds 22 per cent of the shares - as well as from new investors.

The cash will be used in three main areas - product development, expanding the operational team from 13 to 26 by the end of next April, and on capital expenditure for both production and product development.

This will allow the company to accelerate the development of its technology for producing specialist semi-conductor materials, which will revolutionise digital x-ray technology, making it cheaper and easier to use in applications ranging from medical imaging to security screening.

Managing director Dr Arnab Basu said: "This latest funding round marks another significant expansion of the company. The funds will be used for further development of very exciting products to meet the current unmet needs in large, growing markets and to develop strong relationships with key players in those markets.

"Our success is not only great news for the company and for our shareholders, it is also exciting for the North-East, where we are establishing a base for world-beating technology, and which we hope will attract other knowledge-based companies in this and related sectors."