Kurawood plc, a supplier of modified wood to the UK market, aims to raise £4.5-5m in a flotation on the Alternative Investment Market this month.

The move by the Southampton-based company will allow it to purchase the rights to the VECO process, which is designed to give radiata pine the characteristics of hardwood, as well as the manufacturing plant in New Zealand.

Money raised will also finance a new marketing campaign to push the material and expand the capacity of the manufacturing operation.

The flotation on AIM will see Kurawood issue 17 million new shares at 100 pence.

Kurawood says it is in discussion with several high street names and DIY sheds about stocking products made from the material.

Accsys Technologies, which owns the technology to manufacture the rival Accoya modified wood, is also planning a flotation on Euronext Amsterdam this month.

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