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On 16th share price was 24.5p it is now 34p , best to put all the posters below on this thread on ignore IMHO
no it wont
Will Brake 40p this afternoon
WOW nice review there looks OK for the future piled in here with CLON profits can see this finish 50p+
Went in for a few first thing this am, so glad I joined you all here. Game on.
Anyone got a rocket
So minimum fundraise of £25m and open offer of £5m at 20p = at least 150m new shares, on top of about 180m currently in issue. Can see this falling below the offer price once the dust has settled, given the "jam" is still estimated at 3 years away, and quite possibly more?
Well, it was good news they did the financing, and that leaked out. For sure.
Just not THAT good news at 20pgl given colossal falls from the last one or two. And one more cap raising in the pipeline before possible (mere) breakeven.
Not sure anyone is getting richer from Creo just yet. Only poorer. Except the patients served better for less cost, which is why we stay interested.
Why did the price rocket yesterday for it only to be taken back by the RNS this morning, those in the know, know and the rest of us are like lambs to the slaughter. I didn't buy personally but there must be a few who did unless those in the know sold and there where no purchases.......GREED is GOOD i guess for the few rich in the know.
True Shear, the scale-up has been consistent, but worth noting that Edison estimate that, despite this, breakeven has slipped slightly further into the future. Takeover makes a lot of speculative sense - bigger pockets and more powerful management could probably accelerate profitability here.
https://twitter.com/CreoMedical/status/1622909325420204032
"January ?
Some highlights for #Creo in a month which saw record orders for our Speedboat Inject device:
?? High praise from Westminster and the Senedd https://lnkd.in/e9szUwgR
????? Dr. Amol Bapaye MD (MS), FASGE, FJGES, FISG, FSGEI presenting a fantastic Z-POEM case he performed at his Pune hospital with #SpeedboatInject, during a recent symposium in Thailand - https://lnkd.in/ee7AzWJp
?? 3 cases in quick succession from Dr Roy J Mukkada & his team in India https://lnkd.in/ee9_YnFA
????? Becky Smith, from East Kent NHS Hospitals, highlighting the impact Speedboat can have on nurses as well as patients, doctors and hospitals https://lnkd.in/eskEvH9c
??Training the next wave of French #SpeedboatInject users at the first fully French edition of the #PioneerClinicalEducationProgramme in Paris https://lnkd.in/eiBwJD2f
Plus many, many more successful cases, events, showcases and mentoring sessions completed around the world."
A jump like this indicates something positive. No news yet but I expect something. A nice surprise as I was scanning my portfolio generally today. I bought in at 29.618p on 16 Dec 2022 so a little way to go yet to break even but I was looking long term anyway.
Looks like one of several things is happening here;
- Re-rate back to sensible levels in line with AIM listed medtech stocks; POLX = £80m cap, RENX = £110m cap, AGL = £75m cap, to have CREO sub £40m vs £400m this time last year was insane, regardless of the funding situation. I'd say £100m minimum would make sense.
- Takeover by a US entity; with a large patent portfolio & scaling of international reach this was be a great add on for the likes of Procept, Intuitive or several other US listed medtech companies. Any premium paid could be very significant
- Capital raise at a significant premium to the current price - the last 2 raises in 2019 & 2021 were over £1.80...
Either way, at £47m cap it's crazy cheap.
"we now expect Creo to reach net profitability in H126 compared to FY25 previously. However, we expect underlying EBITDA, a key metric used by Creo, to turn positive in H225 (£1.1m in FY25).
Creo ended FY22 with gross cash of £13.1m (estimated net cash position of £6.3m excluding our forecast total debt of £6.8m), which, based on our projected burn rates, should be sufficient to fund operations into Q223. We anticipate the need to raise another £25m (FY23: £15m and FY24: £10m), which we model as illustrative debt, to support its growth plan."
https://www.edisongroup.com/research/progressing-on-all-fronts-2/31884/
Seems to imply no funding will be needed for 2025, presumably because it will be close to breakeven.
Elsewhere in the report they warn that dilution due to fundraising is a distinct possibility in Q2 2023. So great value at current price, but possibly even cheaper very soon? Odd situation
"FY22 year-end cash was reported at £13.1mln. Due to investment in doctor training, Creo is expected by us to need £15-20mln in further funding during 2023 ". OK, so slightly lower cash-burn than last year, but still more than we have available. Then there is 2024. Looks like we have a funding gap of something like £30M to make it to profitability in 2025?
Despite this, they currently value the company at £100m, compared to £36m MCAP
Really intrigued as to what happens next here, I've never seen a share price walked down for such a long period of time. Any buying results in a slowly declining ask price and any selling at all causes an instant drop (see 5k at 21p just now). This tells me that the market makers don't want to hold any stock at all.
I expect the company to put all stakeholders before shareholders, so it honestly wouldn't surprise me to see a 5-10p placing price if they want £20m, that's certainly what the market maker movements are suggesting.
" combination of strong core product revenue growth and active cost control means that the business is well-positioned to further reduce cash burn in FY 2023"
Well-positioned is too weak: the current burn rate gives slightly less than 6 months of fuel, so something stronger is needed to inspire confidence
"the Board is considering a number of options to ensure that the Group is sufficiently funded to meet its stated growth ambitions"
Surely it's high time to stop considering and make a decision? The business does seem to be making good progress, but it's difficult to envisage any SP turnaround with the spectre of (ambitious) fundraising hanging over it. Presumably it will be re-rated downwards, with the level depending on how they spin it
"Creo said it is on track for earnings before interest, tax, depreciation and amortisation breakeven during financial year 2025, in line with market expectations. Cash and equivalents were at GBP13.1 million as at December 31, about half of GBP26.1 million at June 30."
So, about 6 months cash left at that burn rate, and 2+ years until breakeven. Therefore...
wait, is there a page missing?
If the just announced YGEN placing is a guide then CREO are going to be raising around 5p…
I thought it interesting that Cenkos published a substantial broker research note on 23rd November with forecasts out to 2027, it felt to me as if this had been produced for a placing and then released for the market. Shares held around 40p in the weeks beforehand which I suspect was the intended placing price, the recent plunge / lack of news tells me that they were unable to get what they wanted and have withdrawn the offer for the time being.
More volume at 25p but I’m not touching it until they are financed. FWIW the broker note forecast cash requirements of ~£18m before they hit cash flow breakeven in 2025, so a placing of £20m would be my guess…
Fair. We could do with more communication. If it’s Baillie Gifford doing the dumping, they historically never care about a graceful exit and the chart suggests that’s what has happened here. I’m interested in whether they’re disappointed in Creo biz development or whether they’ve got too many fast growing mouths to feed and have had to prune (given poor recent numbers and redemptions). Creo will wait until the seller is finished before updating us. There’s no point pushing on a string. I still like this name and will hold.
Even sharper decline now, some throwing in the towel. Revenue trajectory ought to be good, but management failure to make any comment to stem this freefall suggests either a lack of confidence, or complete indifference. Market seems to be anticipating severe disappointment coming. Communicate Creo!
These guys are horrific . We've been saying the same thing the last 2 years with their antics and underhanded reporting / fund raising and acquisitions to show "revenue".
Only management receiving a wage have made anything here, despite $150m in equity raised plus so many grants.
Management owe many people an apology.