Tissue Regenix: Troubled Leeds firm cancels trading on stock exchange amid financial challenges
Leeds-founded medical equipment manufacturer, Tissue Regenix, has cancelled its trading on the London Stock Exchange as it continues in its bid to recover from the edge of collapse.
The University of Leeds spin-out announced in November that it was launching an “urgent” fundraise, stating at the time that it would be unable to continue trading unless it raised around £5m.
A month prior, the firm’s CEO stepped down from the company as it announced that it had discovered “financial inaccuracies” in its most recent annual results. The discovery led to the firm restating its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) from profit of $1.9m to a loss of $1m.
Launching its fundraise in November, Tissue Regenix said it had become clear the company had “very limited cash balances” as well as a “substantial backlog of creditors”.
The company later announced in December that it had conditionally raised £17.5m, before expenses, adding that it now expected to “remain solvent” assuming certain conditions are met.
The firm’s shares had been suspended since the initial announcement.
Tissue Regenix said yesterday that following the cancellation of its shares on AIM, it would launch a secondary market trading facility.
The firm appointed Asset Match to operate an electronic off-market dealing facility for its Ordinary Shares, allowing existing holders of shares in the company and new investors to trade by matching buyers and sellers through periodic auctions.
October saw Tissue Regenix’s newly appointed executive chairman, Jay LeCoque, take over as acting CEO, after the firm’s previous CEO stood down.
It came just over a month after Mr LeCoque joined the company.
Mr LeCoque in a statement at the time: "Since joining the Group just 40 days ago on 7 September, we have undertaken significant changes to improve our financial, operational and commercial performance.
“I am aware that this restatement has caused immediate concerns for our shareholders and our priorities remain focused on delivering a sustained recovery for the business.
“The board remains confident that by executing on these plans, we can deliver on the group's potential to develop a great business that creates meaningful value for both patients and shareholders.”
Kirsten Lund, former Tissue Regenix finance director from 2019 until 2022, and currently EMEA business director and company secretary, was re-appointed as chief financial officer following the move.
Tissue Regenix said Ms Lund had been appointed with a mandate to “implement strict financial controls across the business and a comprehensive review of the group's cost structure”.