Tissue Regenix, the Leeds-based medical device company, has secured an emergency overdraft to shore up its financial position, enabling the business to make November payroll and remain solvent.
It follows the temporary suspension of trading on AIM of the company’s ordinary shares, and a new senior leadership team reviewing a restatement of revenue numbers for the financial year ended 31 December 2024 (FY24).
A review of financial inaccuracies in relation to year-end inventory and cost of sales for FY24 saw the restatement of adjusted EBITDA from $1.9m to an EBITDA loss of $1m. This restatement has also had an effect on the first half of the business’s 2025 financial year, with adjusted EBITDA of $0.2m being shifted to an EBITDA loss of $2.3m.
In a previous announcement to the London Stock Exchange, the company noted that it has a substantial backlog of creditors and very limited cash balances. Accordingly, the company had an urgent need to raise capital by the end of November. Tissue Regenix shared that without additional funding the company would not be able to continue to trade.
Seeking to restore revenue growth, Tissue Regenix has now secured an emergency overdraft of $500,000 from MidCap, its existing lender, which has allowed it to make November payroll and remain solvent.
Meanwhile, the company remains in dialogue with its major shareholders with respect to its short- and medium-term funding requirement. The firm is expecting to raise funds by way of a convertible loan note.
