Creo Medical Group PLC (AIM:CREO, FRA:1RC, OTC:CMEOF), the medical device company specialising in minimally invasive surgical endoscopy, saw its shares jump 27% to 14.44p after announcing plans to sell its remaining 49% interest in Creo Medical Europe alongside a placing and full-year results.
The company has entered into a non-binding agreement to sell the stake to a vehicle owned by Luis Collantes, the division's chief executive, at an enterprise value in line with its carrying value at the end of 2025, with cash from the deal expected in full at completion.
The two sides are targeting completion within three months, though the deal remains subject to due diligence, definitive documentation and financing approvals.
Creo sold a 51% stake in the European arm last year, generating £24.7 million.
The company will maintain its commercial relationship with the division, which will continue to act as distributor in key European markets for Creo's advanced energy products.
Alongside the stake sale, Creo is raising approximately £5.5 million through a placing of around 36.7 million new shares at 15p each, a 31.9% premium to the previous closing price of 11.4p.
Directors have indicated they intend to subscribe for roughly £2.15 million of the total, with Shore Capital acting as sole bookrunner.
The Development Bank of Wales has also said it will subscribe for £2 million in convertible loan notes.
Full-year results for 2025 showed revenue rising 50% to £6 million, with second-half growth accelerating to 58%.
Underlying administrative expenses fell 22% to £18.6 million and the underlying operating loss narrowed by 38.5% to £13.7 million.
The company narrowed its revenue growth guidance for 2026, now expecting full-year growth of between 50% and 60% compared with a previous range of 40% to 60%, after first-quarter revenue rose approximately 60% year on year.
The outsourcing of manufacturing operations announced in April is expected to cut underlying operating costs by a further 15% compared with 2025.
Chief executive Craig Gulliford said the proposed sale represented an opportunity to crystallise value at an attractive valuation while simplifying the group and strengthening the balance sheet.
The board said the combined proceeds from the placing, loan notes and stake disposal should fund the company through to sustainable cash flow generation and profitability.