Creo Medical, a Chepstow-based medtech firm focusing on minimally invasive surgical endoscopy, has successfully raised £11 million to support its expansion.
- The company is working on a retail offer to raise an additional £5 million, strengthening its financial position.
- Creo Medical plans to sell a 51% stake in Creo Europe to China’s Micro-Tech, expecting cash proceeds of approximately £25.2 million.
- CEO Craig Gulliford emphasizes the importance of these funds in accelerating product development and meeting global demand.
- Creo Medical aims to improve patient outcomes and achieve profitability, despite current financial challenges.
Creo Medical, headquartered in Chepstow, has successfully secured £11 million through a strategic placement of new shares among its major institutional shareholders. This financial maneuver is part of a broader strategy to fund its ambitious growth plans. As a company listed on the Alternative Investment Market, Creo Medical is also looking to bolster its financial strength by raising an additional £5 million via a retail offer.
In a strategic move to enhance its market presence, Creo Medical intends to sell 51% of its stake in Creo Europe to Micro-Tech, a leader in the endoscopic medical devices market in China. This sale, subject to regulatory approvals expected early next year, could result in cash proceeds of approximately £25.2 million. This capital is crucial for Creo Medical’s continued investment in its core business and achieving its commercial and operational objectives.
CEO Craig Gulliford has highlighted the significance of the fundraising, stating, “The net proceeds from the fundraising will be instrumental in accelerating the growth of our technology, ensuring we can meet the increasing global demand for Speedboat.” This new advanced energy multi-modal instrument for flexible endoscopy is part of the company’s efforts to expand and scale their product offerings.
Despite reporting a slight decrease in revenues for the first half of 2024, from £15.7 million to £15.2 million, and an increase in Ebidta losses, which have widened from £9.2 million to £10.5 million, Creo Medical remains optimistic. A broker’s note from Cavendish maintains confidence in the company’s technological advancements, projecting that Creo Medical will become Ebitda positive by 2028, with that year marking a cash low point.
Through strategic partnerships and innovative technology, Creo Medical is poised to maximize growth opportunities. The firm is focused on enhancing patient outcomes and delivering sustainable value for its shareholders, with a clear path towards eventual profitability.
Creo Medical’s strategic financial moves and steadfast focus on innovation position it well for future growth and success.
