X-RAY technology firm Bede plans to raise £3.65m to capitalise on growing demand for its products.

The Durham company wants to place more than 28 million new shares at 14p to generate the money.

The move will give Bede working capital to accelerate the introduction of new products, retain its infrastructure and intellectual property and continue to strengthen the group's sales force.

Bede has struggled during difficult trading conditions caused by over-capacity in the semi-conductor market, which drove prices down.

But a major research and development project has put the company back on a better footing, said chief executive Neil Loxley.

He said: "The group has, over the last two years, undertaken an intensive investment program in research, development and capital expenditure, in order to broaden its product range and target markets.

"Having built the fundamental value into the group, we are now concentrating on the execution and delivery of the long-standing growth strategy.

"The proceeds from the placing should allow Bede to proceed with confidence to exploit returning market demand."

An extraordinary meeting will be held on July 21 when the company will seek shareholders' permission for the share sale.