Wound specialist Tissue Regenix, which uses animal and human tissue to replace damaged human body parts, has renegotiated the terms of its lending facility with MidCap Financial Trust.
Leeds-based Tissue Regenix earlier this week said the facility was likely to breach one of its loan terms.
Tissue Regenix said that based on the data available to the company, it believed it would breach this covenant test.
However, the firm has successfully renegotiated the loan with MidCap Financial Trust, agreeing an immediate repayment of $5.5m of the outstanding term loan. MidCap has agreed to waive the prepayment fee and defer a portion of the exit fee.
The remaining balance of $2m of the term loan currently drawn down by the company will remain in place.
MidCap has agreed to add the repaid $5.5m of the first tranche to its commitment amount under tranche two of the term loan, which consisted of $5m and now consists of $10.5m.
John Samuel, executive chairman of Tissue Regenix, said: “I am very pleased that Midcap have shown their support for the company by entering this revised agreement.
“There is still much to do to bring on stream new capacity but with strong demand for our products and the hard work and dedication of our employees we will continue to review our funding options.”
Tissue Regenix was formed in 2006 when it was spun out from the University of Leeds.
The company’s patented decellularisation (dCELL) technology removes DNA and other cellular material from animal and human soft tissue leaving an acellular tissue scaffold which is not rejected by the patient’s body and can then be used to repair diseased or worn out body parts.
Current applications address many critical clinical needs such as sports medicine, heart valve replacement and wound care.