2nd Dec 2019 13:34
(Alliance News) - Creo Medical Group PLC on Monday said it has raised GBP43.0 million via a firm placing, is launching a bookbuild, and is planning an open offer for up to another GBP6.6 million.
The medical device maker, which focuses on surgical endoscopy, has conditionally raised the GBP43.0 million at 180 pence per share. This represents an 8.9% discount to Friday's closing mid-market price of 197.5p. Shares in Creo were down 7.1% at 183.50p in London on Monday afternoon.
Creo has immediately launched an accelerated bookbuild on the same terms as the firm placing, set to close on Tuesday this week. The bookbuild amount and number of shares are not known at this time.
Further, Creo is planning to raise up to GBP6.6 million through an open offer.
Creo said some orders under its firm placing are based on the percentage and size of the overall placing, meaning firm placing orders might increase.
Net proceeds from the fundraise will be used for working capital so as to strengthen Creo's balance sheet ahead of commercialisation of its CROMA Advanced Energy Platform of surgical endoscopy devices.
The money will also be used for Creo's US commercialisation expansion, with potential mergers and acquisitions, as well as the development of its intellectual property portfolio. Further, the funds will also help develop CROMA technology and assist in clinical trials for China and Japan, as well as research and development for new devices.
Chief Executive Craig Gulliford said: "The injection of additional funds ensures that we can fully capitalise on the growing opportunity that endoscopic surgery offers and will help to accelerate the commercial roll-out of our wider suite of patented electrosurgical devices powered by the CROMA Advanced Energy Platform. This also provides us with a platform to explore potential strategic acquisition opportunities in areas where we can identify adjacent technologies or infrastructure that will support our ambitious growth plans."
By Anna Farley; [email protected]
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