IP Group upbeat on Creavo fundraising

The FTSE 250 company said the round was oversubscribed - exceeding Creavo's funding target - and was “strongly supported” by existing shareholders including the University of Leeds, and new, private and institutional investors from Europe, the US and China, including Parkwalk Advisors and Puhua Capital.

IP Group said the funding would be used to continue growing the Creavo business and moving towards a full commercial launch in Europe, including concluding its clinical study in the UK, building its US operation and associated clinical study and conducting further research to expand the use of its technology into other applications.

Creavo, a spin-out from the University of Leeds, was described by IP Group as a “UK-based med-tech company” that had developed a “uniquely deployable diagnostic technology”, using magnetocardiography (MCG) to measure, display and store electromagnetic fluctuations caused by heart activity, using highly sensitive detectors.

It estimated that its ‘Vitalscan’ device, which could reportedly be more accurate at 'ruling out' heart-related problems at the point of admission to emergency departments, could save the NHS £200m a year.

Following completion of the financing round, IP Group's direct undiluted beneficial stake of 35.1% in Creavo Medical Technologies was valued at £12.8m, and IP Venture Fund II's 13.1% stake was valued at £4.8m.

The fundraising resulted in a direct unrealised fair value gain to IP Group of £4.1m and a fair value gain of £1.4m to IP Venture Fund II.

“As a result of the group's 33% limited partnership interest in IP Venture Fund II, its effective beneficial interest in Creavo Medical Technologies is approximately 39.4% and the net fair value gain is £4.6m,” the board confirmed.

"IP Group and IP Venture Fund II committed £2.8m and £1.2m respectively to the fundraising.”