Creo Medical Group PLC (AIM:CREO) shares surged 27 percent to 14.44 pence after it announced a plan to sell its remaining 49 percent stake in its European division and raise approximately £7.5 million in new funding to shore up its balance sheet.
"The proposed transaction represents an opportunity to crystallise value from our minority interest in CME at an attractive valuation," Craig Gulliford, Chief Executive Officer of Creo Medical, said in a statement.
The medical device maker entered a non-binding agreement to sell the stake to a company owned by the unit’s chief executive, Luis Collantes, with completion targeted within three months. Alongside the sale, Creo is raising £5.5 million through a share placing at 15 pence each—a 31.9 percent premium to the prior closing price—and securing £2 million in convertible loan notes from the Development Bank of Wales.
The combined proceeds are intended to fund Creo through to sustainable cash flow and profitability, supporting the commercial growth and development of its Bipolar product range ahead of an anticipated 2027 launch. The company also narrowed its full-year 2026 revenue growth forecast upwards to between 50 and 60 percent, from a previous 40 to 60 percent.
The divestment and associated fundraising are critical steps for the AIM-listed company as it seeks to simplify its structure and focus on its core advanced energy products. The sale of the European arm, Creo Medical Europe, follows a previous transaction where Creo sold a 51 percent stake in the unit in 2025. The European division will continue to act as a key distributor for Creo's products.
The capital raise received strong support from the company's leadership. Directors have indicated their intention to subscribe for approximately £2.15 million of the placing. This includes a £2 million commitment from chairman Kevin Crofton, £100,000 from finance chief Richard Rees, and £50,000 from CEO Craig Gulliford.
The company's improved outlook was supported by strong first-quarter performance, which saw revenue grow by approximately 60 percent year-on-year. The new guidance suggests management has increased confidence in its commercial trajectory for the remainder of 2026.
This article is for informational purposes only and does not constitute investment advice.
