Tissue Regenix Group PLC (AIM:TRX) has announced a deal for up to £17.5 million of financing in the private market, and said it plans to delist from London's AIM.
The regenerative medicine small-cap agreed to a £17.5 million secured convertible loan notes issue, with most of the debt securities being subscribed for by Harwood Private Equity VI LP.
It said the financing is required to support working capital after recent financial disclosures.
Through the funding deal, the first £7.5 million of the notes will be issued following shareholder approval, and another £10 million is able to follow, conditionally.
Tissue Regenix told its existing shareholders, via a London Stock Exchange RNS, that it is expected that Harwood will convert some $800,000 of the loan notes immediately and, under the investment loan note terms, this would give it some 91% of the company's share capital.
The company said maintaining an AIM quotation was no longer cost-effective following the company’s operational and financial difficulties.