Senior leaders behind Leeds-based Medtech business Tissue Regenix have warned the company will not be able to continue trading without urgent funds this month.
The regenerative products specialist revealed to investors that it has "very limited" cash and requires funding in the next three weeks. Newly installed bosses are now eyeing a £5m fundraise via a convertible loan note, they have told investors on the London Stock Exchange.
Tissue Regenix's troubles stem from inaccurate estimates for 2024 year-end inventory. The issue led to a restatement of 2024 Ebitda from $1.9m to an Ebitda loss of $1m.
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Since reviewing the restating, newly appointed acting CEO and executive chair Jay LeCoque and chief financial officer Kirsten Lund say it has become clear the business has a substantial backlog of creditors and a lack of cash. The news comes as the bosses are focussed on a $2m cost saving plan, designed to improve gross margins and Ebitda performance.
In its update, Tissue Regenix said: "It is now clear to the senior leadership team that the company has a substantial backlog of creditors, and very limited cash balances. Accordingly, the company has an urgent need to raise capital by the end of November. Without additional funding the company will not be able to continue to trade.
"The company is in discussion with its major shareholders and has clear indications of support to raise approximately £5m by way of a convertible loan note. Any fundraise will be subject to shareholder approval."
Tissue Regenix was spun out of the University of Leeds in 2006 and listed on the London Stock Exchange four years later. It opened its first subsidiary office - Tissue Regenix Woundcare, Inc - in San Antonio, Texas, in 2012 and in 2017 acquired CellRight Technologies, also based in the US city.