This announcement contains inside information
Tissue Regenix Group plc
Update in relation to working capital position and impact of COVID-19 pandemic
Leeds, 30 March 2020 - Tissue Regenix Group (AIM:TRX) ("Tissue Regenix" or the "Company") the regenerative medical devices company, today provides an update in relation to its working capital position and an initial assessment of the impact to its business following the outbreak of COVID-19.
Following the trading update announced on 22 January 2020, Tissue Regenix has successfully implemented various cost control measures, resulting in the Board's belief that the Company's available cash runway will now continue to support its working capital requirements until at least the end of the second week of May 2020.
As previously announced, the Board is endeavouring to secure necessary funding for the Company. The Board is encouraged by a number of ongoing discussions with potential investors which the Board is working to conclude in the near future. However, there is no guarantee that any such discussions will result in near-term funding being made available to the Company. Should this funding not be forthcoming before the Company's available cash runway expires (not expected by the Board to be before the end of the second week of May) then the Board will be required to take action to protect the interests of creditors and which, if necessary, is likely to result in a material reduction in any resulting value attributable to shareholders.
During this pandemic, the Board's priority is to safeguard the health and safety of the Group's employees and local communities, as well as support and enforce government actions to slow the spread of the virus. The Company has implemented UK and US government-led policies in relation to the COVID-19 crisis and will continue to monitor the evolving situation. Currently, the San Antonio facility remains fully operational with no material impact on processing. The facility is aligned with the recommendations from the American Association of Tissue Banks regarding tissue procurement guidelines and there continues to be no constraints on supply of tissue. The re-prioritisation of health care professionals has led to a slight decline in the number of elective procedures undertaken, which has been most evident in urogynaecology. However, demand for the Company's BioRinseTM portfolio continues to exceed capacity. Consequently, the Company currently has not experienced any material reduction in net revenues versus expectations.
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
Stifel Nicolaus Europe Limited (Nominated Adviser and Broker)
Jonathan Senior / Alex Price / Ben Maddison
Tel: 0207 710 7600
Simon Conway / Victoria Foster Mitchell / Mary Whittow
Tel: 0203 727 1000
The person responsible for this announcement is, Gareth Jones, Interim CEO.
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.