Creo Medical, based in Chepstow, has raised £11m to support its expansion strategy through a new share placement.
- The firm plans to generate an additional £5m via a retail offer as part of its growth ambitions.
- A strategic transaction involves selling a 51% stake in Creo Europe to China’s Micro-Tech, expected to complete early next year.
- This financial manoeuvre aims to fortify Creo’s minimally invasive surgical endoscopy developments for cancer patients.
- Despite financial challenges, Creo Medical focuses on expanding its technological capabilities and market reach.
Creo Medical has successfully acquired £11m in funds through a share placement with its primary institutional investors. This capital influx is designated to support the company’s ambitious expansion plans.
In the next phase of its financial strategy, Creo intends to raise a further £5m through a retail offer. This approach underscores its commitment to broadening investment avenues and strengthening its fiscal foundation.
Further to these plans, Creo Medical is set to sell a 51% equity stake in Creo Europe to Micro-Tech, a leading company in endoscopic medical devices within China, boasting annual sales around £250m. Subject to regulatory endorsements in both China and Europe, this acquisition is anticipated to reach completion by early next year, with Creo poised to receive approximately £25.2m in proceeds.
The primary focus of this financial augmentation is to enhance investment in Creo’s core business and Kamaptive, aiming to fulfil commercial and operational goals. The funds are expected to expedite the growth of its cutting-edge technologies like the Speedboat, an advanced multi-modal instrument for flexible endoscopy, and to develop and scale products across global markets.
Chief Executive Craig Gulliford has articulated that the financial proceeds from the fundraising will be pivotal in accelerating their technology’s development to meet rising global demands. This, he asserts, will bolster the company’s fiscal health and reinforce its path towards profitability.
While pursuing these growth strategies, Creo continues battling financial pressures, reporting a decrease in revenue from £15.7m to £15.2m in the first half of 2024, alongside increased Ebitda losses from £9.2m to £10.5m. However, analysis from Cavendish suggests optimism for Creo’s technology, anticipating a shift to Ebitda positive by 2028.
Creo Medical’s strategic financial moves position it strongly for future growth in the medical technology sector.
