Oxeco Plc : Tissue Regenix raise £25 Million

Tissue Regenix raise £25 Million
Thursday 19th January 2012

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                                                        Tissue Regenix Group plc

                                               ("Tissue Regenix or the "Company)

                                              Placing to Raise £25 million ("Placing)

pleased to announce a conditional placing of 181,818,182 new Ordinary Shares of 0.5p each ("Placing

Shares), at a price of 13.75 pence per share ("Placing Price) to raise £25 million before expenses (£24.2

million net of expenses).

Highlights

· The Placing proceeds will potentially enable the Company to progress its key programmes through a

range of key value inflection points;

- fund the development of further applications of the vascular patch through a mixture of

preclinical and clinical studies;

- develop the porcine heart valve product and seek regulatory approval for a decellularised

version of an existing bioprosthetic heart valve;

- progress existing meniscus project towards CE approval and initiate ligament development

programme targeted at anterior cruciate ligament repair;

- progress the advanced woundcare area with the development of dermis products; and

- fund expanded teams in product development, quality assurance, regulatory affairs and

manufacturing as well as overheads and costs of a planned move into larger premises.

· The Placing Price represents a discount of approximately 2.7 per cent. to the closing mid-market

share price of the Company on 7 December 2011;

· The Placing has attracted both existing and new investors and includes a significant investment in

the Company by Invesco Asset Management Limited;

· The 181,818,182 Placing Shares will represent approximately 38.6 per cent. of the existing issued

share capital of the Company prior to the issue of the Placing Shares;

· The Placing is conditional, inter alia, on Resolutions being passed at a general meeting of the

Company to grant the directors of the Company authority to allot the Placing Shares and disapply

pre-emption rights in connection with the allotment of the Placing Shares; and

· The Placing has been fully underwritten by Peel Hunt LLP who are acting as sole nominated adviser

and broker.

John Samuel, Executive Chairman of Tissue Regenix, said:

"We are delighted to announce this material funding round which will transform our balance sheet and gives

us the firepower to leverage our innovative technology platform. As well as allowing the Company to

develop a range of products simultaneously following the established medical device regulatory route, this

commitment from both existing and new investors is a significant endorsement of the commercial potential

of our broad product pipeline. The Directors continue to believe that our tissue products' ability to retain

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biomechanical and regenerative capabilities on implantation provides us with an attractive platform from

which we aim to become a significant global player in regenerative medicine.

For further information please contact:

Tissue Regenix Group Plc Tel: [phone]

Antony Odell, Managing Director

Ian Jefferson, Chief Financial Officer

Peel Hunt LLP (Nominated Adviser and Broker) Tel: [phone]

James Steel

Vijay Barathan

Matthew Brooke-Hitching

FTI Consulting

Tel: [phone]

Ben Atwell

John Dineen