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(Alliance News) - Shares rose in Tissue Regenix Group PLC on Thursday as it revised an agreement with lender MidCap Financial Trust concerning a term-loan credit facility and revolving credit facility.
Shares in the medical devices firm - which is headquartered in Leeds - were 33% higher at 1.49 pence on Thursday in London.
In June, Tissue announced it secured a revolving credit facility and term loan credit facility of up to USD20 million.
Tissue Regenix has renegotiated the term-loan facility, agreeing to an immediate repayment of USD5.5 million of the outstanding term loan. In return, MidCap has agreed to waive the prepayment fee and defer part of the exit fee due until the loan is repaid.
The remaining USD2.0 million of the term loan drawn down by the company will remain in place. Tissue Regenix also will continue to be able to draw down the remainder of the revolving credit facility.
With these agreements, MidCap has suspended its testing of the financial banking covenants until the end of June 2020.
MidCap will add the repaid USD5.5 million of the first tranche to the term loan under the second tranche, which will be increased to USD10.5 million.
Access to tranche two and three, the latter consisting of USD2.5 million, remains in place, however the drawdown of these tranches is subject to MidCap's discretion and Tissue Regenix's recapitalisation.
Following the repayment, Tissue Regenix now has enough working capital until the end of March 2020 at least.
"I am very pleased that Midcap have shown their support for the company by entering this revised agreement. There is still much to do to bring on stream new capacity but with strong demand for our products and the hard work and dedication of our employees we will continue to review our funding options," said Executive Chair John Samuel.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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