TRUSPINE TECHNOLOGIES PLC (Alliance News) - TruSpine Technologies PLC on Tuesday said its loss widened in the first half of its financial year, prompting it to enter into a GBP200,000 bridge loan to provide capital for gaining regulatory approval for one of its products.
The Gatwick, England-based medical device company said pretax loss in the six months that ended September 30 was GBP545,399, widening by 27% from GBP428,605 a year earlier.
This was because of administrative expenses rising by 13% to GBP543,369 from GBP480,834 a year earlier, as TruSpine continues to be in a pre-revenue development phase. Within administrative expenses, development expenditure more than halved to GBP216,000 from GBP463,000.
TruSpine said it was disappointed with the delays and challenges faced during the half-year period, saying it will submit a 510k application to the US Food & Drug Administration in 2023 for its first spinal stabilisation device Cervi-LOK. This is to secure clearance for the product and move toward commercialisation.
Truspine has entered into a GBP200,000 bridging loan facility alongside a non-binding letter of intent for GBP2.4 million in staged equity funding over three tranches of GBP800,000. It said this would provide the required funding to advance Cervi-LOK FDA approval and commercialisation.
This allows GBP200,000 to be available immediately at an 8% interest rate per year, which is repayable from proceeds of the first tranche of the LOI or convertible on the same terms to equity.
The first tranche is expected to be drawn no later than January 31.
Shares in TruSpine were quoted at 3.13 pence each on AQSE in London, having last traded at 2.88p on Friday.
By Greg Rosenvinge, Alliance News reporter
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