5th Nov 2018 13:08
LONDON (Alliance News) - Regenerative medicines developer Collagen Solutions PLC said on Monday it has entered a deed of variation to its existing bond subscription agreement with venture capital firm Norgrine Ventures.
The variation provides for a six-month principal repayment holiday from October 31 to March 31, 2019, with principal repayments made through a balloon payment at the redemption of the bonds.
Tranche 'A' bonds will be redeemed on September 30, 2020, and tranche 'B' bonds redeemed on January 31, 2021.
This variation is expected to provide Collagen's management with grater flexibility to exploit growth opportunities for later years.
"We have seen a return to growth in the first six months of the financial year and we remain on track to meet our financial performance objectives in line with market expectations. The management team has continued to generate a large number of business leads, some of which may require incremental upfront investment on initiation," said Chief Financial Officer Hilary Spence.
"Whilst there is no current financial year requirement, with one eye on exploiting opportunities for future financial years this variation provides management greater flexibility to deliver on these leads and on other growth opportunities that will contribute to future performance," Spence added.
Shares in Collagen Solutions were untraded on Monday, last quoted at 3.20 pence.
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