Creo Medical announces plan to raise over £30m
ONE of Wales’ leading medical devices company, Creo Medical, has announced plans to raise more than £30m to fund its continued global expansion.
The Chepstow-based Alternative Investment Market listed firm is looking to fundraise a minimum of £25m via a conditional placing and subscription of new ordinary shares and a further £5.2m through an open offer.
It is hoped the funds will help the firm maintain momentum in the business following its significant operation progress last year, including the commercialisation of its electrosurgical devices.
The directors also expect the funds to allow Creo Medical to breakeven with its cash flow and achieve profitability.
Joint brokers Cenkos and Numis are leading the fundraiser. Last month, Proactive research analyst John Savin put £100m valuation on Creo in a research note on the group.
Creo chief executive Craig Gulliford
said: “We’re delighted to announce the launch of this funding round which will not only provide us with the working capital to accelerate the rollout of our core technology, but will also resolve the funding gap to provide us with a pathway to being cash flow breakeven and, ultimately, to profitability.
He added: “Over the last year we have demonstrated rapid growth in the core technology and product revenues coming out of the pandemic.
“We have seen excellent progress across our clinical adoption, Pioneer training programme, new product launches and partnering projects, and our Kamaptive partnerships with Intuitive and CMR Surgical, where our products are being adapted for use with robotic-assisted surgical platforms, continue to progress well.
“These funds will allow us to continue to support the commercial scaling up of our core technologies, expand our Kamaptive programme, which is focussed on large markets with significant growth potential, and develop our endoscopic suite of products for roll out on a global basis.”