Tissue Regenix Group PLC (AIM:TRX) has ended its strategic review after failing to attract a takeover offer that matched valuations typical for the sector.
"The board, in conjunction with advisors and major shareholders, will continue to assess the best route forward to deliver the substantial value that exists in this business, which is not being reflected in the share price today," the company said in a press release.
The medical devices company launched the process in November last year, having invited interest in a possible takeover.
However, the board said the current market valuation did not reflect the company’s recent performance or future potential, making a transaction unviable.
Since the review began, shares in Tissue Regenix have fallen more than 30%, despite a series of positive operational developments.
The group reported an 8% increase in full-year revenue to $28.4mn for 2024 and said adjusted earnings were ahead of expectations. It also extended a major customer contract and secured a European patent.
The company, which specialises in regenerative products used in surgery and wound care, has recorded eight consecutive reporting periods of revenue growth and reported adjusted EBITDA profits for both 2023 and the first half of 2024.
"Demand for our market-differentiated tissue products remains strong and will be augmented with product line enhancements with existing and new customers to drive additional growth in 2025," said CEO Daniel Lee.
"Our flexibility has given us the ability to weather the significant regulatory and market changes we have encountered over the last year. This strategic process has not changed our growth strategy across all of our divisions."
With the review now concluded, Tissue Regenix is no longer in an offer period under the UK Takeover Code and is not subject to related disclosure requirements.