Creo Medical Share Discussion Threads

[networker] 19/10/2024 09:41

I am not aware if CREO made any comments at yesterday's EGM held in Bristol.
Here are their recent (official) comments on recent events:-

"As you know the Company announced its strategic partnership with Micro-Tech and the intended disposal of a 51% stake in Creo Europe. Unfortunately, Creo Medical wasn’t in a position to arrange the Placing to coincide with the disposal. After the Micro-Tech news was released a broker’s research note was published that restated again the analyst’s view that the Company had a funding requirement, and that they continued to assume that Creo Medical would need additional cash to bridge through to proceeds from the disposal (although less than previously expected given the transaction). Given the current environment of the equity markets this led to a drag on the share price.

In addition, since the announcement of the fundraising, there has been an institutional seller in the market (for non-Creo specific reasons), which has caused further downward pressure. At the same time as there has been a lack of buying activity across equity markets generally due to concerns about what might be announced in the upcoming budget. The Company and its advisers are working hard to ensure that this overhang is cleared and that the share price recovers. "

[dr biotech] 17/10/2024 17:16

1.7% of the target amount from the public offering. They probably lost money doing that. Have to ask the advisors what they did for their money.

[bloomberg2] 17/10/2024 16:36

17 October 2024Creo Medical Group plc("Creo" or the "Company") Result of Retail Offer Further to the announcements dated 30 September 2024 and 4 October 2024 in relation to the Retail Offer, Creo announces that, following the closing of the Retail Offer by BookBuild earlier today, 369,109 Retail Offer Shares will be issued at an Issue Price of 24 pence per Retail Offer Share in connection with the Retail Offer. Consequently, a total of 50,369,109 New Ordinary Shares, comprising 50,000,000 Placing Shares and 369,109 Retail Offer Shares will be issued conditional on the passing of the Resolutions by Shareholders at the General Meeting to be held on 18 October 2024. Admission, settlement and dealings Application will be made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on AIM. Admission is expected to take place at 8:00 a.m. on 21 October 2024 and dealings in the New Ordinary Shares are expected to commence at 8.00 a.m. on 21 October 2024 or such later time and/or date as the Joint Bookrunners and the Company agree (being in any event no later than 8.00 a.m. on 11 November 2024). The New Ordinary Shares, when issued, will be credited as fully paid and will rank pari passu in all respects with the existing Ordinary Shares, including the right to receive all dividends and other distributions declared, made or paid after the date of issue. Capitalised terms used but not defined in this announcement have the same meanings as set out in the circular to Shareholders dated 1 October 2024. For further information please contact: Creo Medic

[dr biotech] 17/10/2024 14:43

I'm only a nominee holder so wouldn't be able to attend anyway. They did let me into the AGM but not the voting part. My understanding is that tomorrow would just be a quick vote and thats about it. If they wanted to engage they would have held it somewhere better, ie their own place.

I've just noticed a bit from the circular


The Company continues to proactively manage its cost base and is taking steps to reduce it by a further £5 million as a result of: completing the current robotic prototype work, increasing the proportion of outsourced development and a reduction in the general and administrative costs associated with Creo Europe following its deconsolidation post completion of the Sale"

As with all companies that say they are going to slash costs, what were these people hired for if they are no longer needed? I can understand the robotics ceasing, but I guess they were carrying some additional admin staff. Hopefully they can all find jobs though.

[bmcollins] 17/10/2024 09:29

Sadly I can't get to Bristol tomorrow but I wish I could...
WRT a reduction of fees we have 2 hopes, no hope & Bob Hope !

[networker] 17/10/2024 09:15

Is anyone planning to attend the EGM in Bristol tomorrow morning? It should provide some opportunity to chat to the directors and ask them some very pertinent questions about the bungled fundraising process.

[dr biotech] 17/10/2024 08:53

I guess they will point to the £12m that they raised via the first tranche. Will be interesting to see how much they have raised via the public offering. I'll guess at around £30k. Probably a few shareholders that want to "help out" or they just didn't realise what the share price has fallen too. Needless to say I don't expect anyone on here to have bought.

[slicethepie] 15/10/2024 13:46

Thought the children handling the placing would be back from hols by now !

[dr biotech] 12/10/2024 20:01

hxxps://www.aim-awards.co.uk/index.php/?cID=235

Best tech. They also won that last year..

[slicethepie] 04/10/2024 12:18

It's either that or else the children who did the raise at cavendish and deutsche realised they are on half term next week! Please write to the company telling them to slash the fees payable to these clowns

[skinny] 04/10/2024 11:28

A link to the above ~:-

[bmcollins] 04/10/2024 09:51

Don't know if this is old news but AJ Bell just sent me an email saying that the retail offer has been extended until 17 Oct.
Clearly nobody will buy at 24p when market is lower but I guess it's a signal that they intend to get the share price up above 24p in next 2 weeks ?

[bmcollins] 04/10/2024 09:38

@Dr B
Google;

baillie gifford creo medical at the spearhead of surgery

and you will see it
Hope this helps

[dr biotech] 04/10/2024 08:44

Do you have a link for that? I can't find it.

[bmcollins] 04/10/2024 08:15

Citywire this morning are running an article by Baillee Gifford (holders of Creo from the outset) on Creo, a very interesting piece, imho.

[malcolmz1] 03/10/2024 16:09

Chart turning. Bottom is in.

[bjfanc] 02/10/2024 10:13

So selling for circa £25 million cash now means a forfeit of £1.5million.

[bmcollins] 02/10/2024 10:11

@Dr B
Thanks for those thoughts, I fear that they are pretty much on the money, if one is allowed to use that expression about Creo ?
The greed of the directors was something that I stupidly didn't look at when I did my due diligence, their avarice is jaw dropping...

[dr biotech] 02/10/2024 09:05

Will be interesting to see how much if anything is raised in the public offering. You'd think the answer would be 0, but there are always a few mugs about. I've followed the offers made through Primary bid - mostly but not entirely a list of barge pole companies wanting to raise money to pay their directors. One of them (BMN) offered the shares at 0.3p when the market buy price was something like 0.24 - and still raised a few tens of thousands. Their share price as of course dropped since then and anyone who took part on the placing is in the 90% club.

Of course those who took part in the early placings here are sharing the same liferaft.


---
To answer the previous question, the sale of the consumables business will result in a loss of about £1.5m of cash per year. That would of course push time to break even back a bit here, but according to their previous forecasts only by a year, if that. Its the lack of sales that has been the real issue and delayed forecast breakeven to 2028. It will also cause a huge slump in revenue as currently all creo revenue is counted and as they will become a minority holder I believe that will then drop the consumables revenue to zero. I'm not an accountant so I may be wrong. Obviously they would have their 49% holding that would get a dividend at 100% profit instead.

The one possible saviour would be a deal with a kampative partner. When I was at the AGM I asked what did they need to really drive sales - the reply was clinical data. Whilst the ball is rolling its not going to be anytime soon.

[slicethepie] 01/10/2024 20:41

I apologise for repeating this but this poorly handled placing is bad for the uk market in general. For two quality brokers to make such a mess is unacceptable. They both had plenty of time to get their books in the right position and to understand the share register. At a minimum they should refund creo 50% of their fees. I am pretty sure all the investors who got legged over will cut their commission for a few months.

[malcolmz1] 01/10/2024 18:15

I'm in for another 81k shares at 21p. Buy when others are fearful

[bmcollins] 01/10/2024 16:57

I added at just over 22p but then I guessed I'd be a Diana Ross for the uptick (I'm still waiting)...

[malcolmz1] 01/10/2024 16:39

Wait and see. This is a bargain at 21p.