Tissue Regenix Group
plc
('Tissue Regenix', the 'Group' or the
'Company')
Building
purchase
Tissue Regenix acquires
existing facilities as part of Phase 2 expansion
plan
Transaction will create cost
savings over time
Tissue Regenix Group plc (AIM: TRX), the
regenerative medical devices company, announces that it has
purchased the building it is currently leasing at the Group's
Universal City, TX facility. Tissue Regenix first occupied the
building in 2021 as part of its Phase 1 and 2
expansion plans.
The Group's initial lease came with a purchase
option for the building, giving the Company the option to buy at a
pre-set price through November 2024. Following a recent appraisal,
it was determined that the purchase option was below the fair
market value of the property; this, coupled with lower fixed
interest rates from lenders, created an attractive opportunity for
the Company to buy the building. Tissue Regenix has financing for
the entire purchase price, and no cash down payment is required.
The mortgage payments are on par with the current lease payments,
but since the lease includes standard increase clauses, the Group
expects to see cost savings over time.
Preliminary activities for Tissue Regenix's
Phase 2 expansion are due to start in the second half of 2024, with
completion expected in 2025. The Phase 2 expansion will provide the
Group with additional cleanrooms, operational capacity
and further office space. The Phase 2 expansion is funded by the
current business plan and will provide Tissue Regenix with
substantial additional capacity as the management team continue to
drive sustainable growth and scale the business.
Daniel Lee,
CEO of Tissue Regenix, commented: "The purchase of this building at our
Universal City, TX location was a logical part of our expansion
plans, especially with the capital investment we have already made
and will make in the near future. This acquisition makes strong
financial and commercial sense for the Group, particularly as we
expect to realise cost savings over the long term compared to a
continued lease of the facility, and it supports our expansion
plans. We look forward to updating shareholders on the Phase 2
expansion in due course."
For more
information:
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Tissue Regenix
Group plc
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www.tissueregenix.com
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David Cocke, Chief Financial Officer
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via Walbrook
PR
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Cavendish
Capital Markets Limited (Nominated Adviser and
Broker)
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Emily Watts/Geoff Nash/George Dollemore -
Corporate Finance
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Nigel Birks/Harriet Ward - ECM
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Walbrook PR (Financial PR and IR)
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Tel: +44
(0)20 7933 8780
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Alice Woodings/Charlotte Edgar
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TissueRegenix@walbrookpr.com
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About Tissue Regenix
(www.tissueregenix.com)
Tissue Regenix is a leading medical device
company in regenerative medicine. The Company's patented
decellularisation technology (dCELL®) removes DNA and other
cellular material from animal and human soft tissue, leaving an
acellular tissue scaffold that is not rejected by the patient's
body and can be used to repair diseased or damaged body structures.
Current applications address many crucial clinical needs in sports
medicine, foot and ankle injuries, and wound care.
In August 2017, Tissue
Regenix acquired CellRight Technologies®. This biotech company
specialises in regenerative medicine and is dedicated to developing
high-quality, innovative tissue scaffolds to enhance healing
opportunities in defects created by trauma and disease. CellRight's
human tissue products may be used in spine, trauma, general
orthopaedic, dental and ophthalmological surgical
procedures.
