Why this Leeds wound specialist may not have to pay back its latest loan

The Leeds-based firm has received of $629,000 through one of its banking providers to assist with overhead costs experienced in the US during the coronavirus outbreak.

The loan has a two year term and carries a one per cent annual interest rate deferred for six months.

However, under the loan agreement, the total amount will not require repayment if the funds are used to support employee payroll, healthcare, utilities and rent payments within the US during the next two months.

Tissue Regenix says it intends to use the funds to support these activities and therefore expects the loan to meet the criteria and not require repayment in the future.

Gareth Jones, interim CEO of Tissue Regenix, said: "The Covid-19 pandemic is a difficult and uncertain time for a number of businesses.

"However, we are encouraged by our ability to implement initiatives to address government advice and ensure the health and well-being of our employees and stakeholders, whilst continuing to process our product portfolio at our facility in San Antonio.

"Securing additional funds through the US Government backed loan offers a level of financial security during these uncertain times, and provides an extended cash runway, allowing for the continuation of ongoing discussions with potential investors."

Tissue Regenix also reported that revenues in the first quarter to March 31 increased by 18 per cent year-on-year, confirming no material impact on sales following a cyber security incident experienced at its San Antonio facility in January 2020.

The company said it continues to experience no disruption in its supply chain and there is sufficient inventory of all required equipment and donor materials, which has meant there has been no disruption to processing at its San Antonio facility.

In Leeds, where the firm's processing of the porcine product portfolio is undertaken, sufficient inventory to meet near-term demand has been manufactured. Therefore the firm has halted production and furloughed technical staff.