CREO Creo Medical Group Plc

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 UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. WITH THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Creo Medical Group plc

("Creo" the "Company" or the "Group")

Completion of sale of 51% interest in Creo's European subsidiary

Update on receipt of cash proceeds of approximately €30m

Creo Medical Group plc (AIM: CREO), a medical device company focused on the emerging field of minimally invasive surgical endoscopy for pre-cancer and cancer patients, announces that the sale of 51% of the issued share capital of Creo Medical S.L.U. has now completed in escrow, pending receipt of net cash proceeds of approximately €30m.

As announced on 18 September 2024 (RNS 7151E: Strategic partnership & 51% subsidiary cash sale), Micro-Tech (NL) International B.V., a wholly owned subsidiary of Micro-Tech (Nanjing) Co. Ltd (SHA: 688029) ("Micro-Tech") agreed to purchase 51% of the issued share capital of Creo Medical S.L.U. ("Creo Europe"), a wholly owned subsidiary of Creo, at an equivalent equity value of €72m (the "Sale") on a cash-free, debt-free basis. Along with other customary conditions, completion of the Sale was contingent on Micro-Tech obtaining Outbound Direct Investment clearance in China along with Foreign Direct Investment clearances in Spain, France, Belgium and Germany. These relevant clearances have all been obtained.

The net proceeds are expected to be received shortly and will be used to strengthen the Group's balance sheet, enabling continued targeted investment in the growth of its core Creo and Kamaptive business and deliver on its commercial and operational objectives. A further update will be provided on receipt.

The person responsible for arranging the release of this Announcement on behalf of the Company is

Richard Rees, a Director of the Company.

 For further information please contact: 

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