Member Info for B2HS2L

We need to license a few Dermapure patents, using the upfront and ongoing payments to advance the business plans and keep the wolf from the door.
Why is this so difficult for the board?

Parkez,

"injection in capital. Dependent on structuring"

source: https://www.investopedia.com/terms/d/debtrestructuring.asp

The debt restructuring process can be carried out by reducing the interest rates on loans or by extending the dates when a company’s liabilities are due.
A debt restructure might include a debt-for-equity swap, when creditors agree to cancel a portion or all of the outstanding debt in exchange for equity in the company

CellRight products aren't patented.
See last nights 18:43 post

"The enormous mis-match between the growth prospects, valuation and
market capitalisation will not be corrected until the company’s funding requirement
is resolved."

As the company has RNS'd this Hardman report, I expect they want to use it as the backdrop to a near term action on the finance side, (why let financial problems go on now now its all out in the open).

Could it be that they intend a part loan part placing.

Part loan to keep the repayments down, and because MidCap might not want to loan so much with all the production problems evident since the first June 4th 2019 loan agreement, and part placing to reduce dilution.

RNS 04.06.2019

Annual Results for the year ended 31 December 2018

"Delivering new Product Development and I.P."

"We continue to protect and monitor our intellectual property by maintaining several patents worldwide for the dCELL portfolio encompassing both the core dCELL Technology and individual product processes.

The BioRinse portfolio remains protected by know-how and we continue to register trademarks for all relevant logos and trade names."

+++

So the BioRinse products are not covered by patent.
It seems likely therefore that the security breach was due to criminals wanting to identify the practices and processes concerned with producing the BioRinse portfolio.

If there is no patent for these products, would we may have paid a significantly cheaper price for CellRight. (?)

chester,

What is not helping is that we have a BoD who are all money men, bar one.
There is scant experience as an Operations director, and we are pioneering the development of production facilities, to be performed as they can be afforded.
There is one guy in San Antonio, - President of US operations Danny Lee, - who is in charge of too many different facets of production.
I just hope 2Swell are involved, and dealing with future planning and development, such that Danny can get on with managing present production.

According to H-L, Gareth Jones is wearing too many hats:
Interim Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Executive Director, Secretary.

That's not a sound state of affairs for any company or individual.

chester: - To me it all comes down to what can we physically produce once the new manufacturing unit is fitted out and in full swing.

I think it is more a case of the modular development of the new facility as envisioned in RNS's below.
Management are not planning to spend all the loan at once, and if they did,
there would be nowhere near enough trained staff.

New Facility = 21,000 sq foot, Old facility = 13,700 sq foot.

RNS 15.08.2019:
"The new facility, ..will be brought on stream in a phased plan to meet the growing commercial demand for the Company's novel product portfolio. Phase one will commence immediately with part of the new building being converted into office, distribution and warehouse space, allowing for additional clean rooms to be built in the original facility, which are expected to be operational by the end of H1 2020."

I don't believe the above has started through lack of funds.

19.11.2019 Proactive Video:
@ 03.10 Gareth Jones talks about the new facility, and see's product demand driving the development of the production facilities.

So it is planned that new production facilities will arrive in a modular fashion, - spend X to expect Y product output.

RNS 22.01.2020:
"We increased the throughput of our five clean rooms in San Antonio through the commencement of a second shift during H2 2019. As a result of the recruitment of additional new staff, together with subsequent training, we expect this second shift to reach full productivity by the end of H1 2020."

full productivity by the end of H1 2020, when previously the second shift were expected to be up to speed Q3/Q4 2019.
Planning the recruitment / training for a third shift is mentioned.

"..The new building ..which, subject to financing, will enable the building of new clean rooms in order to satisfy anticipated demand from our current customer base and potential future partners. Whilst the Company has made good strides towards addressing its manufacturing capacity constraints, the Board believes that these will not be fully addressed until the Company is able to bring onstream some of the additional facility. The fit out of the first phase of the Facility, planned to begin in 2020, will be primarily for the CellRight product range and is subject to the Company securing the necessary funding."

TS - My thoughts exactly.

From the 28.01.2020 RNS - Notice of cyber security incident

"The person responsible for this announcement is John Samuel, Executive Chairman."

A NOMAD would have inserted or deleted anything from a regulatory perspective.

https://www.informationsecuritybuzz.com/expert-comments/cyber-breach-causes-shares-to-fall-for-medical-manufacturing-firm-tissue-regenix/

Experts Comment - Boris Cipot, Senior Sales Engineer, Synopsys:

"It would be interesting to know how long the attackers had access to their systems, and what data was accessed, stolen or even possibly modified. The investigation will reveal the details of the attack, but whatever the result will be it is refreshing to see news about companies that act quickly and responsibly to investigate the cause and implement a remediation strategy, shut down access to the systems and publicly announce the breach. Every company needs a plan in place as to what steps to take in situations where systems have been breached. Yes, the company’s shares have gone down, but we should keep in mind what it could have meant for the company had they kept quiet about the breach. Not disclosing the incident could result in their customers and suppliers losing trust in the organisation, which would have a far worse financial affect in the end."

It looks like TRX had a plan, and implemented it when the security breach was discovered.

I think they acted as any insurer would have wished, maximising the chance of successful forensics, and also the chances of a successful claim.

As TRX are in talks with relevant legal authorities, - depending on the nature of the problem, I wonder if it is these which are preventing a return to normal?

My only concern is that system logins for the 18 redundant staff were not been cancelled when they left.

I just think the second RNS updates the first.

There is also this in the 14.11.2019 RNS:

"The Company will also continue to have access to draw down the remainder of the RCF (revolving credit facility), which is calculated based on the underlying inventory and receivables on the balance sheet and eligibility thereof."

So we are looking at reduced access to RCF, if we can't get back to work.

Parky re your 11:43 / 11:49 posts

From the 04.06.2019 RNS - Secures Credit Facilities of up to $20m

Terms of the Facilities

"The Facilities will consist of a $15.0 million secured, 5-year term loan (the "Term Loan"), and a $3.0 million revolving line of credit with a potential further $2.0 million (the "Revolver"). Under the terms of the agreements, the Term Loan will be divided into three tranches, which will become available, dependent on certain conditions being met. Tranche one consists of $7.5 million ("Tranche One"). Tranche two consists of $5.0 million and is available from February 2020 to April 2020 ("Tranche Two"). The final tranche of $2.5 million is available from February 2021 to April 2021 ("Tranche Three")."

From the 14.11.2019 RNS - Updated loan facility agreement with MidCap:

"The remaining balance of $2.0 million of the Term Loan currently drawn down by the Company will remain in place ("Tranche One")"

"MidCap has agreed to add the repaid $5.5 million of Tranche One to its commitment amount under tranche two of the Term Loan, which consisted of $5.0 million and now consists of $10.5 million ("Tranche Two"). Access to Tranche Two and the final tranche of $2.5 million ("Tranche Three") of the Term Loan remain in place, however the drawdown of these tranches is now subject to MidCap's discretion and satisfactory recapitalisation of the Company at that time."

No mention of access dates now, just access via "MidCap's discretion and satisfactory recapitalisation of the Company at that time2.

Currently CTS has been sub-contracted to process Dermapure tissue for TRX, (which will have a cost).
I cannot find out if CTS is providing extra tissue for Dermapure processing, so it remains to be seen by how much our Dermapure margins are being squeezed, but at least ARMS is getting all tissue except the tissue that would have been processed in house.
Bone tissue processing for Arthex has stopped until we hear further.

Relatively pleased with the way the sp is behaving so far in the circumstances.
Plenty out there with a longer term point of view, and looking for a bargain.

2018 Annal Report:
https://www.tissueregenix.com/media/2228/tissue-regenix-ar-2018-web-ready.pdf

Pages 25/6/7.

I would advise taking the time to read these RISK MANAGEMENT FRAMEWORK pages.

"A list of the principal risks and mitigating factors facing the Group at this time are listed below, in no
particular order."

Mentions insurances, but much else besides.

Wishing you luck with your call today Woodstock, - Many Happy Returns to you and also to Jarrovian.

You'll be fine woody, - just make sure they don't mistake you for a journalist!

Good show Parky.
I emailed investorservices@linkgroup.co.uk, and asked
"Can you please advise why TR1's are not being provided by Link, to the companies Woodford invested in."

Hargreaves Lansdown re-directed my queery to the above, their response being 'why ask us, we don't know, ask Link'

Would you regard EVE as being 'illiquid'?

Stu,
I'd like to know please if CTS are providing Dermapure processed tissue that we have provided to them,
or whether they are providing the tissue and the Dermapure processing. Thanks.

If it makes a difference this is the response rate to my emails :
Responses 1, No Responses 4

Stu: Have I got this right and how do people see this going?

Investors are due to receive an update on the fund's investment approach, its new portfolio, recent performance and costs of repositioning before 13 February.

'costs of repositioning':

None, some, or all of TRX shares have been sold, but the new portfolio will verify, on 13th Feb.

Also "But on 31 January Link said that the fund's investment allocation HAS BEEN (past tense) repositioned meaning that trading can resume on 13 February."

Note: The new fund's aim is different to the old:

"The fund, which had assets of about £252m as of 30 January, changed its investment objective following the appointment of the new manager. This included dropping an income target of 5p per share a year in favour of a focus on achieving a yield higher than that of the FTSE All Share index over a three-year rolling period."

So I would expect a reasonable amount of changes to portfolio shares and holdings.

Stu "So if TRX are in this fund, a large percentage may remain unsold, as I understand, pending a sale at a more favourable price."

B2H: My view is that the portfolio changes have already taken place, no further selling required after 13.02.

I hope this doesn't cloud the issue, - just my interpretation.

So we are all on the same page, San Antonio Texas is GMT -6hrs (Central Standard Time) according to:
https://24timezones.com/usa_time/tx_bexar/san_antonio.php

I'm assuming they are working on the security breach 24hrs / day,
so perhaps we'll get an RNS update at 09:00 CST, = 15:00 GMT.
allowing time to write the RNS, that makes 15:30 GMT.

The other option is no update, and they get the weekend to sort themselves out.
So RNS definitely Monday 07:00 GMT, fix or no fix.

BWTFDIK?

Thanks Nomlungu.

That's not an inconsiderable fine even for J&J.

I hope it goes toward finding a permanent fix for all those women whose mesh procedure has or will become an uncomfortable & painful problem.

If they become candidates for Dermapure alografts all the better, - I'm sure Dermapure will provide a much more satisfactory repair.

We need to know what has become the default procedure now mesh is banned in USA.

There is a link to a story of 1350 women suing in Australia, and this is definitely worth a read.

https://www.theguardian.com/australia-news/2019/nov/21/australian-women-win-landmark-vaginal-mesh-class-action-against-johnson-johnson

It proves that J&J supplied to a non-US customer base!

I have messaged H-L and asked the following. Will advise any response.
***
All Woodford funds have been placed in either 'liquid' or 'illiquid' bundles, before the shares are sold off
to re-imberse Woodford Fund holders.
Since the selling started, none of these companies have issued TR1's to reflect the divestment of shares when shares are sold.
Link had 234million Tissue Regenix shares from Woodford, representing 19.98% of the companies issued shares.
Can you please advise why TR1's are not being issued when Link divest themselves of these shares.
***
Surely the BoD of all companies affected, want to keep abreast of who owns what?