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Regenerative medical devices company Tissue Regenix said it had secured a US government backed loan of $629k to assist with the potential impact of the Covid-19 pandemic.
The loan had a two-year term and carried a 1% annual interest rate deferred for six months.
It would not require repayment if the funds were used to support employee payroll, healthcare, utilities and rent payments within the US during the next two months.
'The company intends to use the funds to support these activities and therefore expects the Loan to meet the criteria and not require repayment in the future,' Tissue Regenix said.
Revenue in the third quarter had risen 18% on year and the company said it had cash at the end of March of £1.7m.
Following receipt of the loan, it said it now expected its cash runway to extend to at least the second week of July.
'The board continues to be encouraged by discussions with potential investors however, there is no guarantee that any such discussions will result in near-term funding being made available to the company,' it added.
'Should this funding not be forthcoming before the company's available cash runway expires then the board will be required to take action to protect the interests of creditors and which, if necessary, is likely to result in a material reduction in any resulting value attributable to shareholders.'
Tissue Regenix said it continued to experience no disruption in its supply chain amid the Covid-19 pandemic.
But it warned a decline in elective procedures was sapping demand and said it couldn't yet provide guidance for 2020.
'Securing additional funds through the US government backed loan offers a level of financial security during these uncertain times, and provides an extended cash runway, allowing for the continuation of ongoing discussions with potential investors,' chief executive Gareth Jones said.