Tissue Regenix to list on AIM following deal

Tissue Regenix, the Yorkshire medical business which is developing tissue-repair technology for the human body, has announced the proposed reverse takeover of AIM-listed Oxeco.

The Leeds University spin-out company, which believes its innovations could address shortfalls in donor tissue availability, will seek admission to AIM following the deal.

The deal will see £4.5m of new funds raised through a placing while a new board has taken control of the enlarged group.

Tissue Regenix uses its dCELL technology platform to remove cells and other components from human and animal tissue allowing them to be used without anti-rejection drugs to replace worn out or diseased body parts.

The proceeds of the listing will be used to advance Tissue Regenix’s strategy of using its core dCELL technology as a platform to develop a range of products.

The three priority markets for the application of the technology are vascular, cardiac and orthopaedics.

Tissue Regenix’s lead product is the dCELL Vascular Patch, intended to be permanently implanted into the human body for vascular repair and the company intends to start marketing the product in Europe during the second half of 2010.

The company is also set to focus on the dCELL Meniscus, which will repair damaged knee meniscus, and will use some of the new funds raised for its development.

Oxeco is a company which helps the growth and development of businesses in the technology and science sectors.

John Samuel, Tissue Regenix’s chairman, said: “The new board looks forward to completing this listing which will give us access to the capital required to use our dCELL platform to capitalise on the growing global demand for regenerative medical devices.

“This acquisition represents the next milestone in Tissue Regenix’s development.  Admission to the AIM Market of the London Stock Exchange allows Tissue Regenix to continue to strengthen its shareholder base and balance sheet and gives the company the resources needed to fund the further development of the dCELL Technology and the securing of regulatory approval for marketing for its dCELL Vascular Patch.”

Michael Bretherton, Oxeco’s chairman, said: “The opportunity with Tissue Regenix will provide an exciting new start for the company.”

Tissue Regenix was established in 2006 in order to commercialise the research of the University of Leeds.

Mr Samuel, Antony Odell, Alan Miller, Alex Stevenson and Alan Aubrey will join the board as executive chairman, managing director and non-Executive directors respectively.

Mr Bretherton, will remain on the board as finance director.

Corporate lawyers at DLA Piper in Leeds advised Tissue Regenix on the deal, led by partner Tom Heylen with support from solicitor Victoria Rhodes.

The Leeds office of Baker Tilly were reporting accountants on the transaction. 

Mark Pownall, corporate finance partner at Baker Tilly, said: “This was an interesting project to work on and I am pleased that Tissue Regenix has secured funding to be able to make further developments in this exciting field of regenerative tissue implants”.