Creo Medical has exceeded its original funding target with institutions following its first fundraising round. The Chepstow-based medical devices company previously announced its plans to raise over £30m to fund its continued expansion.
It has now announced that it raised £28.5m in its first share offering after hoping to raise at least £25m via conditional share placement and subscription - exceeding its target by £3m. The Alternative Investment Market-listed firm is still expected to raise at least a further £5.2m in its next funding round through an open offer.
Joint brokers Cenkos and Numis are leading the fundraiser. The funds will provide Creo with working capital to fund the commercialisation of its electrosurgical devices and help it achieve profitability.
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Chris Donnellan, equity research analyst at Cenkos, said: “We forecast group revenues of around £100m by FY27E, with a significant contribution from Speedboat and associated products for upper and lower gastrointestinal (GI) procedures.
"Importantly, we include only c£9m of revenues from Kamaptive licensing, which we believe leaves significant upside given the scale and commercial reach of Intuitive, in particular.
“We believe the announced fundraise will remove current cash concerns, allowing investors to focus on the significant market opportunity Creo’s technology addresses.”
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