Listing provides funding for Tissue Regenix

The York-based group, which was spun out of the University of Leeds, joined the Alternative Investment Market (AIM) via the reverse takeover of technology firm Oxeco.

Tissue's unique technology, dCELL, removes cells from human and animal body parts to create a scaffold which can be used to replace worn out or diseased body parts, without the need for anti-rejection drugs.

The company believes its technology has the capacity to revolutionise medicine.

Its technology is aimed at addressing the expectations of the aging population for "50 active years after the age of 50".

It raised 4.5m via placing and now has funds of 7.4m, which it will use to develop dCELL, which it said has applications in vascular, cardiac and orthopaedic medicine.

The group's main product is the dCELL Vascular Patch, which is permanently implanted into the human body for vascular repair.

The company intends to start marketing the dCELL Vascular Patch in Europe during the second half of 2010.

It then plans to focus on dCELL Meniscus, for the repair of damaged knee meniscus.

Tissue chairman John Samuel said: "The successful completion of this listing in such testing market conditions underlines the strength of our technology and the size of the market opportunity.

"We now have the capital required to use our dCELL platform to capitalise on the growing global demand for regenerative medical devices."

The company is backed by IP Group, which turns university research into business. It has 15.4 per cent of the company after investing another 3.6m through the placing.