Creo Medical Group plc is looking to raise more than £30 million.

The Chepstow company makes minimal invasive devices for therapeutic endoscopic procedures.

Initially floated in 2018, its share price has nosedived from 172 pence a year ago to just 27.8p at the close on Wednesday. It has fallen further to 22p in the first 90 minutes of trading on Thursday.

The conditional placing, expected to close later today, is offering shares at 20p to certain institutional and other investors and aims to raise £25m.

Creo is also proposing to raise up to approximately £5.2m by way of an open offer, which will be available to all qualifying shareholders.

“The directors believe that, despite the backdrop of challenging macroeconomic conditions, 2022 was another year of significant operational progress for the group, and the company is pursuing the fundraising in order to raise sufficient funds to maintain momentum in the business,” it stated.

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Craig Gulliford, CEO, added: “We’re delighted to announce the launch of this funding round which will not only provide us with the working capital to accelerate the roll out of our core technology, but will also resolve the funding gap to provide us with a pathway to being cash flow breakeven and, ultimately, to profitability.

“Over the last year we have demonstrated rapid growth in the core technology and product revenues coming out of the pandemic. 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.”

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