Creo aims to raise more funds to support U.S. endosurgery rollout

London
The company plans to raise about $20-26 million or more through another listing of shares on the London Stock Exchange. (Pixabay)

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.

FREE DAILY NEWSLETTER

Like this story? Subscribe to FierceBiotech!

Biopharma is a fast-growing world where big ideas come along every day. Our subscribers rely on FierceBiotech as their must-read source for the latest news, analysis and data in the world of biotech and pharma R&D. Sign up today to get biotech news and updates delivered to your inbox and read on the go.

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.

RELATED: FDA clears Creo to sell surgical endoscopic device

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.

Suggested Articles

Researchers at MIT have developed a bionic hybrid heart designed not for patients, but for engineers—to better test out new heart valve designs.

Profusa's latest offering provides doctors a “broader data picture” and offers patients a more convenient way to check oxygen levels in their limbs.

Digital stethoscope company Eko has received FDA clearance for its AI algorithms to help detect asymptomatic heart conditions.