Midcap1 Jan 2020 14:04
" however the drawdown of these tranches is now subject to MidCap's discretion and satisfactory recapitalisation of the Company at that time."
these tranches?
Recapitalisation...
What is Recapitalization?
Recapitalization is a type of a corporate restructuring that aims to change a company’s capital structure. Usually, companies perform recapitalization to make their capital structure more stable or optimal. Recapitalization essentially involves exchanging one type of financing for another – debt for equity, or equity for debt. One example is when a company issues debt to buy back its equity shares.
Leveraged Recapitalization
In a leveraged recapitalization, the company replaces part of its equity with additional debt and thereby changes its capital structure. One form of leveraged recapitalization might be a company issuing bonds to raise money.
A company may resort to leveraged recapitalization if its share price declines. In this case, the company may issue debt securities to fund buying back its outstanding shares in the market. By reducing the number of outstanding shares, the company expects to increase the per share price.
This is imo is the route that Tissue Regenix will take to meet the criteria on recapitalisation Why would Midcap insist on a placing,A placing is THE ALTERNATIVE to Midcap supplying the funding,
Buy back the shares,(the 19.98% owned by link as at 15 nov would be a place to start) stick them in treasury, sp growth due to exceptional demand for products, reissue the shares as required for further funding.
Seems fairly straightforward to me!
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