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Tissue Regenix secures US$20mln credit facility; says current trading is in line

“The additional capital secured through the credit facilities allows us to focus on further scaling the manufacturing capacity of the business and pursue further partnership opportunities, driving the business trajectory towards self-sustainability,” said chief executive Steve Couldwell.

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Tissue Regenix Group PLC (LON:TRX) said current trading was in line with expectations as it confirmed it had secured a US$20mln credit facility that would allow management to invest in growth.

MidCap Financial Trust is providing a US$15mln, five-year loan, a three-year revolving line of credit and further US$2mln revolver if needed.

The regenerative medical devices group will draw down an initial US$7.5mln.

“The additional capital secured through the credit facilities allows us to focus on further scaling the manufacturing capacity of the business and pursue further partnership opportunities, driving the business trajectory towards self-sustainability,” said chief executive Steve Couldwell.   

“With the commercial foundations now firmly set and the financial position of the group stronger, I look forward to another year of exciting business development and continued business growth."

Revenues up 47%

The funding update was announced alongside the publication of Tissue’s prelims, which revealed revenues had grown 47% to a pro-forma £11.6mln in 12 months to December 31.

DermaPure, a decellurised human dermis product, saw sales grow by three-quarters, while orthopaedics and dental sales of BioRinse, a sterilisation technology, were up 31%.

As is common with businesses in the formative stages of commercialisation, Tissue was lossmaking (to the tune of £8.2mln before exceptional items). Cash at the period-end was £7.8mln.

Operationally, 2018 was a busy year as the company signed an initial US distribution agreement with Arthrex Inc for certain BioRinse products.

Trading "in line" 

It also received a Human Tissue Authority licence for the import of products from the US, while DermaPure production was successfully transferred to the San Antonio facility ahead of schedule.

In an update on trading, Tissue said its performance was in line with management’s expectations.

Adding some nuance, it told investors there would be a “significant weighting” towards the second half.

It explained this was due to a “continued increase in supply across both the bioSurgery and orthopaedics divisions [in the second-quarter], a strong order book and additional upcoming product launches”.

In late morning trading, shares in Tissue Regenix rose 11% to 6.29p.

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Quick facts: Tissue Regenix Group PLC

Price: 2.75 GBX

AIM:TRX
Market: AIM
Market Cap: £32.23 m
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