20 May 2020 07:00
20 May 2020
Collagen Solutions plc
("Collagen Solutions" or the "Company")
Government Backed Loan and Grant Funding Received
Collagen Solutions Plc (AIM: COS), the developer and manufacturer of biomaterials and regenerative medicines for the enhancement and extension of human life, announces that Collagen Solutions (US) Inc. ("Collagen Solutions USA") and Collagen Solutions (NZ) Limited ("Collagen Solutions NZ"), the Company's wholly owned operating subsidiaries in the USA and New Zealand respectively, have received a mix of loan and grant funding based on those governments' COVID-19 economic support programmes.
Collagen Solutions USA received $US 240,000 in U.S. Government backed loan funding through one of the Company's banking providers. This loan has a two-year term with an interest rate of 1.0% per year, with payments of principal and interest deferred for the first six months. The loan may be forgiven in whole or in part if used for eligible purposes including payroll and rent in the USA in the first eight weeks of the term. The Company believes that a substantial part of this funding will be forgiven, effectively acting as a form of grant. To the extent all or some portion of the principal amount is not forgiven, Collagen Solutions USA is obligated to make equal monthly payments of the remaining principal and interest.
Collagen Solutions NZ also received $NZ 35,000 from the New Zealand Ministry for Social Development's Wage Subsidy Scheme, which does not need to be repaid provided the scheme criteria are met. The Company believes these criteria will be met, and therefore this subsidy is also a form of grant.
The Company continues to pursue additional potential non-dilutive sources of cash including various governments' COVID-19 loans and grants.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Collagen Solutions Plc |
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Jamal Rushdy, CEO | Via Walbrook | |||
Hilary Spence, CFO |
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Cenkos Securities Plc (Nominated Adviser and Broker) |
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Giles Balleny (Corporate Finance) | Tel: 0207 397 8900 | |||
Stephen Keys |
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Walbrook PR Ltd | Tel: 020 7933 8780 or collagen@walbrookpr.com | |||
Anna Dunphy | Mob: 07876 741 001 | |||
About Collagen Solutions:
Collagen Solutions Plc is a global supplier, developer, and manufacturer of medical grade collagen, tissues, and related medical devices and components for use in regenerative medicine, tissue engineering, and research. The Company is also expanding its range of biomaterials-based finished medical devices based on its internal and acquired intellectual property for commercialisation with partners via licensing and distribution arrangements, including ChondroMimetic®. The Company's products are used in a wide variety of applications including orthopaedics, cardiovascular, dental, plastic surgery, wound healing, neurology and urology.
FORWARD LOOKING STATEMENTS
This announcement (including any information incorporated by reference in this announcement), contains certain statements that are or may be deemed to be forward looking statements. Such statements are prospective in nature. All statements other than historical statements of fact may be forward looking statements. Without limitation, statements containing the words "targets", "plans", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "estimates", "projects", "remain confident that" or "considers" or other similar words may be forward looking statements.
Forward looking statements are based on current expectations that involve or are subject to risks, changes in circumstance, assumptions and uncertainties. Important factors such as business or economic cycles, the measures introduced in response to the COVID-19 pandemic, the terms and conditions of the Company's financing arrangements, tax rates, or increased competition may cause the Company's actual financial results, performance or achievements to differ materially from any forward looking statements. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward looking statements. The information in this announcement is provided only as at the date of its release, and the Company disclaims any obligation to update any forward looking or other statements contained herein, except as required by applicable law.
For more information go to: www.collagensolutions.com