REG - Tissue Regenix Group - Building purchase

Tissue RegenixAnnouncement

14/06/2024 07:00

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RNS Number : 3358S  Tissue Regenix Group PLC  14 June 2024

 

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:

 

 Tissue Regenix Group plc                                                www.tissueregenix.com (http://www.tissueregenix.com)
 David Cocke, Chief Financial Officer                                    via Walbrook PR

 Cavendish Capital Markets Limited (Nominated Adviser and Broker)
 Emily Watts/Geoff Nash/George Dollemore - Corporate Finance
 Nigel Birks/Harriet Ward - ECM

 Walbrook PR (Financial PR and IR)   Tel: +44 (0)20 7933 8780
 Alice Woodings/Charlotte Edgar      TissueRegenix@walbrookpr.com

 

About Tissue Regenix (www.tissueregenix.com (http://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.

 

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