Update in relation to loan facility
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Tissue Regenix Group plc
Update in relation to loan facility provided by MidCap
Leeds, 11 November 2019 - Tissue Regenix Group (AIM: TRX) ("Tissue Regenix", or the "Company"), the regenerative medical devices company, announces an update in respect of the loan facilities provided by MidCap Financial Trust ("MidCap Financial"), further details of which are contained in the Company's announcement on 4 June 2019.
The terms of the loan credit facility entered into with MidCap Financial for a term loan (the "Term Loan") and revolving credit facility (the "RCF") include certain financial covenants which are tested periodically. One of these covenants is a trailing 12 month revenue test which is scheduled to be tested as at 31 October 2019 no later than the end of November 2019. Based on the data available to the Company the Board are of the view that the Company will fail this covenant test. On that basis, the Board has proactively engaged with MidCap Financial in respect of this potential breach and is currently in discussion in relation to the consequences of this. These discussions are progressing well and the Board is optimistic of being able to agree a solution with MidCap Financial.
As at 8 November, being the last practicable date ahead of the announcement, the Company had drawn down $7.5 million of the Term Loan and $0.6 million of the RCF. The Company's cash balance as at 31 October 2019 was $9.3 million.
Further announcements will be made at the appropriate time.
For more Information:
Tissue Regenix Group plc
Caitlin Pearson Head of Communications
Tel: 0330 430 3073 / 07920272 441
Stifel Nicolaus Europe Limited (Nominated Adviser and Broker)
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 the release of 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.
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Quick facts: Tissue Regenix Group PLC
Market Cap: £12.01 m
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