This announcement contains inside information
Tissue Regenix Group plc
Updated loan facility agreement with MidCap
Leeds, 14 November 2019 - Tissue Regenix Group (AIM:TRX) ("Tissue Regenix" or the "Company") the regenerative medical devices company, announces the terms of a revised agreement ("Agreement") that it has entered into with MidCap Financial Trust ("MidCap") with regard to the term loan credit facility (the "Term Loan") and revolving credit facility (the "RCF") (together, the "Facilities"). This follows the Company's announcement on 11 November 2019. Further details of the Facilities are contained in the Company's announcement on 4 June 2019.
Following engagement with MidCap the Company has successfully renegotiated the Term Loan, agreeing an immediate repayment of $5.5 million of the outstanding Term Loan ("Repayment"). Under the terms of the Agreement, MidCap has agreed to waive the prepayment fee and defer a portion of the exit fee due thereunder until the earlier of the date upon which the Term Loan is repaid or the maturity date. The remaining balance of $2.0 million of the Term Loan currently drawn down by the Company will remain in place ("Tranche One"). The Company will also continue to have access to draw down the remainder of the RCF, which is calculated based on the underlying inventory and receivables on the balance sheet and eligibility thereof. In addition, MidCap has agreed to suspend its testing of the financial banking covenants until 30 June 2020, when it will recommence with reduced revenue targets.
MidCap has agreed to add the repaid $5.5 million of Tranche One to its commitment amount under tranche two of the Term Loan, which consisted of $5.0 million and now consists of $10.5 million ("Tranche Two"). Access to Tranche Two and the final tranche of $2.5 million ("Tranche Three") of the Term Loan remain in place, however the drawdown of these tranches is now subject to MidCap's discretion and satisfactory recapitalisation of the Company at that time.
The repayment of the outstanding principal of the Term Loan will begin on 1 July 2020 and will amortise on a straight-line basis across 48 months.
The Company's cash balance as at 31 October 2019 was $9.3 million including $0.6 million of drawn RCF. Following the Repayment, the Company will have cash of approximately $3.7 million including $0.7 million of the drawn revolver and as at 31 October 2019 the business had access to a further $1.1 million of the RCF based on the available inventory and receivables at that time.
The Company estimates that, following the Repayment, it currently has sufficient working capital until at least the end of March 2020. The Board is currently considering the funding requirements, and further announcements will be made at the appropriate time.
John Samuel, Executive Chairman Tissue Regenix Group plc, commented: "I am very pleased that Midcap have shown their support for the Company by entering this revised agreement. There is still much to do to bring on stream new capacity but with strong demand for our products and the hard work and dedication of our employees we will continue to review our funding options."
For more Information:
Tissue Regenix Group plc
Caitlin Pearson Head of Communications
Tel: 0330 430 3073 / 07920272 441
Stifel Nicolaus Europe Limited (Nominated Adviser, Broker and Financial Advisor)
Jonathan Senior / Alex Price / Ben Maddison
Tel: 0207 710 7600
Brett Pollard / Victoria Foster Mitchell / Mary Whittow
Tel: 0203 727 1000
The person responsible for this announcement is John Samuel, Executive Chairman
About Tissue Regenix
Tissue Regenix is a leading medical devices company in the field of regenerative medicine. Tissue Regenix was formed in 2006 when it was spun-out from the University of Leeds, UK. The company's patented decellularisation ('dCELL®') technology removes DNA and other cellular material from animal and human soft tissue leaving an acellular tissue scaffold which is not rejected by the patient's body and can then be used to repair diseased or worn out body parts. Current applications address many critical clinical needs such as sports medicine, heart valve replacement and wound care.
In November 2012 Tissue Regenix Group plc set up a subsidiary company in the United States - 'Tissue Regenix Wound Care Inc.', January 2016 saw the establishment of joint venture GBM-V, a multi- tissue bank based in Rostock, Germany.
In August 2017 Tissue Regenix acquired CellRight Technologies®, a biotech company that specializes in regenerative medicine and is dedicated to the development of innovative osteoinductive and wound care scaffolds that enhance healing opportunities of defects created by trauma and disease. CellRight's human osteobiologics may be used in spine, trauma, general orthopedic, foot & ankle, dental, and sports medicine surgical procedures.