University of Leeds spin-out Tissue Regenix has revealed it is looking to raise £25m through a placing. The regenerative medical device maker, an IP Group portfolio company, said the move could support the creation of 30 skilled jobs in Yorkshire.
Following completion of the placing, IP Group and its managed funds will hold a 17.6 per cent stake in the regenerative medical device maker. IP Group will hold a 13.8 per cent shareholding, while IP Venture Fund, a specialist venture capital fund managed by the group, will hold a further 3.8 per cent.
IP Group has committed £2.5m to the placing. At the placing price of 13.75p, IP Group's 13.8 per cent beneficial interest in Tissue Regenix will be valued at £12.4m.
The fundraising will back an expansion programme expected to create 30 skilled medical jobs.
Tissue Regenix was incorporated in May 2006 to commercialise the academic research of Professor Eileen Ingham and Professor John Fisher from the University of Leeds in the field of tissue decellularisation.
Its dCELL technology comprises a patented process which removes cells and other components from human and animal tissue allowing it to be used without anti-rejection drugs to replace worn out or diseased body parts.
"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," said Tissue Regenix executive chairman John Samuel.
"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.
"We are also pleased to note that the planned expansion of key teams will potentially lead to the creation of up to 30 high quality medical technology jobs in Yorkshire.
"The directors continue to believe that our tissue products' ability to retain 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."
The Leeds corporate team of DLA Piper advised Tissue Regenix, led by partner Tom Heylen and supported by associate Victoria Rhodes.