Creo Medical Group - Proposed Sale of 49% Interest in Creo Medical SL
THIS ANNOUNCEMENT WAS DEEMED BY THE COMPANY TO CONTAIN INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATIONS (EU) NO. 596/2014 AS THEY FORM PART OF
Creo Medical Group plc
("Creo", the "Company" or the "Group")
Proposed Sale of 49% Interest in Creo Medical SL
Creo Medical Group plc (the "Company" or "Creo") announces that it has entered into a non-binding agreement ("LOI") with a company (the "Purchaser") owned by
The LOI sets out the principal terms on which the Purchaser would acquire Creo's remaining minority interest in CME, either directly or through a newly incorporated acquisition vehicle. The Proposed Transaction is based on an indicative enterprise value for CME in line with its carrying value as at
The Proposed Transaction remains subject to, inter alia, shareholder pre-emption processes being undertaken, satisfactory completion of due diligence by the Purchaser, agreement of definitive transaction documentation between the parties and receipt of final financing approvals. The parties are targeting completion within three months. There can be no certainty that the Proposed Transaction will progress to definitive transaction documentation and complete, nor as to the final terms of the Proposed Transaction.
The Proposed Transaction would enable the Company to realise value from its minority investment and further strengthen its balance sheet to allow the Company to continue to deliver on its accelerating growth strategy, reach profitability and achieve sustainable cash flow generation. Creo will maintain its strong relationship with CME, with CME to continue to act as the Company's distributor in key European jurisdictions for its advanced energy products. On completion, the Company will not participate in any future profits or dividends from CME.
A further announcement in respect of the Proposed Transaction will be made in due course.
"This proposed transaction represents an opportunity to crystallise value from our minority interest in CME at an attractive valuation. It supports our strategic priority of simplifying the Group and strengthening the balance sheet, while enabling continued investment in our product range, commercial expansion and other commercialisation opportunities with our technology platform."
For further information please contact:
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Creo Medical Group plc |
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Via Walbrook PR |
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Deutsche Numis (Nominated Adviser and Joint Broker) |
+44 (0)20 7545 8000 |
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Shore Capital (Joint Broker)
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+44 (0)20 7408 4090 |
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Walbrook PR Ltd |
Tel: +44 (0)20 7933 8780 or creo@walbrookpr.com |
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Mob: +44 (0)7980 541 893 / +44 (0)7407 804 654 |
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About Creo Medical
Creo is a medical device company focused on the development and commercialisation of minimally invasive electrosurgical devices, bringing advanced energy to endoscopy.
The Company's vision is to improve patient outcomes through the development and commercialisation of a suite of electrosurgical medical devices, each enabled by CROMA, powered by Kamaptive. The Group has developed the CROMA powered by Kamaptive full-spectrum adaptive technology to optimise surgical capability and patient outcomes. Kamaptive is a seamless, intuitive integration of multi-modal energy sources, optimised to dynamically adapt to patient tissue during procedures such as resection, dissection, coagulation, and ablation of tissue. Kamaptive technology provides clinicians with increased flexibility, precision and controlled surgical solutions. CROMA currently delivers bipolar radiofrequency ("RF") energy for precise localised cutting and focused high frequency microwave ("MW") energy for controlled coagulation and ablation via a single accessory port. This technology, combined with the Group's range of patented electrosurgical devices, is designed to provide clinicians with flexible, accurate and controlled clinical solutions. The Directors believe the Company's technology can impact the landscape of surgery and endoscopy by providing a safer, less invasive and more cost-efficient option for procedures.
For more information, please refer to the website www.creomedical.com
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