Creo Medical Group (AIM:CREO) announced it is raising, in aggregate, approximately £5.5 million (gross) through a placing of approximately 36.67 million new shares at an issue price of 15p per share to provide additional capital to facilitate continued growth and support commercial momentum while it seeks to complete the proposed CME Stake Disposal.
The company says the net proceeds of the placing together with a conditional £2 million convertible loan note subscription by Development Bank of Wales will be used, in the stated order, to (i) provide additional capital to maintain and develop commercial momentum whilst the CME Stake Disposal is completed and to mitigate completion risk, and (ii) fund growth initiatives including investment in the Bipolar range ahead of anticipated 2027 commercial launch and working capital for international roll-out and inventory.
The placing price of 15p represents approximately 31.9% to the 21 May closing middle market price of 11.4p and the placing shares equal c.8.9% of existing issued share capital and approximately 8.2% of the enlarged share capital post-issue, based on calculations from the figures in the announcement.
Certain directors have indicated an intention to subscribe in aggregate for approximately c.£2.15 million of the placing with further details to be disclosed alongside the placing results.
The group reported cash and cash equivalents of £12.4 million at 31 December 2025, and the directors say the combined effect of the placing, the CLNs and, if completed, the CME Stake Disposal will provide the resources to progress towards sustainable cash flow, while noting prior going-concern disclosures.
The placing is being conducted by Shore Capital via an accelerated bookbuild which opened immediately, and is not underwritten.
