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Regenerative medical devices company Tissue Regenix said it was in talks with loan provider MidCap Financial Trust after assessing that it would likely breach on one of loan's terms.
The terms of the loan credit facility and revolving credit facility included certain financial covenants, including a trailing 12-month revenue test.
That covenant was scheduled to be tested as at 31 October no later than the end of November.
'Based on the data available to the company the board are of the view that the company will fail this covenant test,' Tissue Regenix said.
'On that basis, the board has proactively engaged with MidCap Financial in respect of this potential breach and is currently in discussion in relation to the consequences of this.'
'These discussions are progressing well and the board is optimistic of being able to agree a solution with MidCap Financial.'
At 8:21am: (LON:TRX) Tissue Regenix Group PLC share price was -0.3p at 1.75p