Creo Medical Group PLC (AIM:CREO, FRA:1RC, OTC:CMEOF) announced plans to raise approximately £5.5 million through a placing as the medical device company moves to strengthen its balance sheet while pursuing the sale of its remaining stake in Creo Medical Europe.
The AIM-listed group said it intends to issue around 36.7 million new shares at 15p each, a 31.9% premium to Thursday’s closing mid-market price of 11.4p. The new shares would represent about 8.9% of Creo’s existing issued share capital. Certain directors have indicated they intend to subscribe for around £2.15 million of the placing, including £2 million from chair Kevin Crofton, £100,000 from finance chief Richard Rees and £50,000 from chief executive Craig Gulliford.
Creo separately said it had entered into a non-binding letter of intent for the potential sale of its entire 49% holding in Creo Medical Europe to a company owned by Luis Collantes, the unit’s chief executive. The proposed disposal is based on an indicative enterprise value in line with the stake’s carrying value at 31 December 2025, with completion targeted within three months.
The company said proceeds from the placing, alongside £2 million of proposed convertible loan notes from the Development Bank of Wales and the potential stake sale, would support commercial growth, working capital and development of its Bipolar product range ahead of an anticipated commercial launch in 2027.
Creo added that first-quarter revenue growth for 2026 was around 60% year on year and said it now expects full-year revenue growth of between 50% and 60%, narrowed from previous guidance of 40% to 60%.