Tissue Regenix purchases building at Texas site

14th Jun 2024 09:58

(Sharecast News) - Medical technology company Tissue Regenix has purchased the building it currently leases at its facility in Universal City, Texas.

Tissue Regenix said on Friday the building's initial lease came with a purchase option for the, giving it the option to buy at a pre-set price through November 2024. Following a recent appraisal, it was determined that the purchase option was below the fair market value of the property, creating "an attractive opportunity" for the company.

The AIM-listed firm stated it has financing for the entire purchase price, and noted that no cash down payment was required. Mortgage payments were said to be on par with the current lease payments, but since the lease includes standard increase clauses, it expects to actually see cost savings over time.

Chief executive Daniel Lee said: "The purchase of this building at our Universal City, TX location was a logical part of our expansion plans, especially with the capital investment we have already made and will make in the near future. This acquisition makes strong financial and commercial sense for the Group, particularly as we expect to realise cost savings over the long term compared to a continued lease of the facility, and it supports our expansion plans. We look forward to updating shareholders on the Phase 2 expansion in due course."

As of 1100 BST, Tissue Regenix shares were down 0.76% at 65.0p.

Reporting by Iain Gilbert at Sharecast.com