Creo Medical Group PLC (AIM:CREO) has confirmed it has raised £12 million via a share placement. These funds will allow it to accelerate the growth of its medical technology and meet the increasing global demand for its Speedboat product, which is used in minimally invasive surgeries.
An offer of new stock to private investors could bring in up to a further £5 million. Combined with the proceeds from the sale of a 51% stake in Creo Europe (the former Albyn Medical business), Creo will have £40 million and be "sufficiently well-funded to reach profitability", investors were told.
CEO Craig Gulliford added: "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 and further develop and scale our product offerings, strengthening our balance sheet and leaving the company well-funded to reach profitability.
"This will also allow us to maximise the growth opportunities we have with our strategic partners. both of whom will help drive the growth of our core products and core revenues."
Newly minted stock was sold for 26.75p, a 10.3% discount to Friday's closing price.