A SPECIALIST scientific company's cash crisis is set to be solved after shareholders voted to raise the money to ensure it continued trading.

Millbrook Scientific Instruments is hoping to raise between £350,000 and £400,000 after shareholders agreed to buy more shares to be issued in the company.

The firm based in Challlenge Way, Blackburn, manufacturers hi-tech equipment used in microscopic investigations.

It was facing a short-term funding shortfall after a MiniSIMS ToF instrument, which detects the presence of chemicals on surfaces, was damaged in transit in June when it was being delivered by air to a company in the USA.

After the accident, the board said it had sufficient funds to continue through until the end of September but would struggle for cash until it started to receive payment for orders.

Its short-term funding forecast had been hit following the damage, which was being assessed by insurers, and the refusal of bankers to increase Millbrook's overdraft.

The company received commitments from companies and banks to provide £200,000 to help alleviate the problems.

However, at an EGM (extraordinary general meeting) shareholders have also voted to buy newly issued shares for around 2p per share because it would create equity in Millbrook which loans would not.

Paul Grasske, chief executive said the exact amount raised would be known when the deadline to buy shares expires on September 14.

He added the capital raised would see the company through the rest of the year.

Mr Grasske said: "We are to issue more shares to existing shareholders which will give us enough money.

"The EGM only gives us the authority to issue the shares so the money will not be raised until the shares are bought.

"The shareholders have voted for it and we are optimistic it will solve our short term problems."

Millbrook Scientific, which employs 11 staff in Blackburn, was formed in 1995 and last year had a turnover of £1.89million Its clients have included the University of Melbourne, Australia, the Illinois Institute of Technology, Chicago, Massachusetts Institute of Technology, and Derbyshire firm Winnats Scientific Services.