Endoscopic surgery device manufacturer Creo Medical has told investors it has been considering seeking additional funding, following the FDA’s clearance last year of its minimally invasive tool for removing precancerous lesions from the bowel.
The company’s board of directors has instructed its advisers to begin work on a placing of new, ordinary shares for institutional and other investors on the AIM submarket of the London Stock Exchange in order to capitalize on its “current momentum” and exploit the opportunities it believes are currently available, it said in a filing with the exchange.
Initially, the board was aiming to raise £15-20 million ($20-26 million), but feedback from investors may drive the company to aim higher, it said.
The proceeds would enable the company to add global distribution partners and accelerate its product rollouts in the U.S. and elsewhere by scaling up manufacturing capabilities. The money could also fund further R&D into its gastrointestinal suite of products and extend its clinician training program.
In addition, the board said additional funds would make Creo a more attractive target for mergers or acquisitions.
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While the company could not confirm any timing or pricing for the proposed share placing, the board said it would aim for a value as near to its June 27 closing price as possible, about £1.25, or 124.8 pence sterling.
The Chepstow, Wales-based company first filed its IPO in December 2016, raising about $26 million to fund its Croma surgical system, which uses radiofrequency technology for tissue dissection and resection, and microwaves for ablation and coagulation. It previously raised about $21 million as a private enterprise.
Creo’s Speedboat RS2 instrument for tumor and lesion removal was granted 510(k) clearance for endoscopic submucosal dissection by the FDA in August 2017. The company believes the use of electromagnetic energy reduces the risks of puncturing tissue during the removal of colorectal polyps.