(Alliance News) - Creo Medical Group PLC on Thursday proposed a placing and subscription of new shares to raise a minimum of GBP25.0 million, alongside a GBP5.2 million open offer.
The Chepstow, Wales-based medical device company focused on surgical endoscopy said the issue price of each share under the placing, subscription and open offer would be 20 pence per share.
Shares in Creo Medical plunged 18% to 22.88p in London on Thursday morning.
The number of shares to be issued under the placing and subscription was not disclosed, while it said up to 26.0 million new shares would be issued under the open offer.
Creo Medical said the proposed fundraise will be used to progress its development and commercialisation plans for its electrosurgical devices, which it claims are "minimally invasive".
This is alongside providing the company means to break even in its cash flow towards profitability and increased balance sheet strength.
"Over the last year we have demonstrated rapid growth in the core technology and product revenues coming out of the pandemic," said Chief Executive Officer Craig Gulliford. "We have seen excellent progress across our clinical adoption, Pioneer training programme, new product launches and partnering projects, and our Kamaptive partnerships with Intuitive and CMR Surgical, where our products are being adapted for use with robotic-assisted surgical platforms, continue to progress well.
"These funds will allow us to continue to support the commercial scaling up of our core technologies, expand our Kamaptive programme, which is focussed on large markets with significant growth potential, and develop our endoscopic suite of products for roll out on a global basis."
Cenkos Securities PLC and Numis Securities Limited are acting as joint bookrunners and joint brokers for the three fundraises, Creo Medical added.
By Greg Rosenvinge, Alliance News reporter
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