Collagen Solutions PLC Realignment of Bond Repayments (2667G)

TIDMCOS

RNS Number : 2667G

Collagen Solutions PLC

05 November 2018

5 November 2018

Collagen Solutions plc

("Collagen Solutions", the "Company" or the "Group")

Realignment of Bond Repayments to enable further growth to be achieved

Delivering on our Growth Strategy

Collagen Solutions plc (AIM: COS), the developer and manufacturer of biomaterials and regenerative medicines for the enhancement and extension of human life, announces that it has entered into a deed of variation to its existing Bond Subscription Agreement with Norgine Ventures. This variation provides for a 6month principal repayment holiday. While there is no current year requirement for this variation, it will provide management with greater flexibility to exploit growth opportunities for future years.

Consistent with the Company's ability to conservatively manage its cash balances whilst looking to exploit growth opportunities for the benefit of shareholders the Company has agreed an amendment to the timing of principal repayments on Tranche A and Tranche B Bonds issued to Norgine Ventures under the 2017 Bond Subscription Agreement. The variation gives a principal repayment holiday of six months from 31(st) October 2018 to 31(st) March 2019 with the principal repayments being instead made via a balloon payment at the redemption of the Bonds on 30 September 2020 for Tranche A and 31 January 2021 for Tranche B. Prior to this agreement, the Company remained in compliance with all payment schedules and had repaid a total of GBP0.42million in principal against the total GBP3 million drawn.

Commenting on outlook, Hilary Spence, CFO says: "We have seen a return to growth in the first six months of the financial year and we remain on track to meet our financial performance objectives in line with market expectations. The management team has continued to generate a large number of business leads, some of which may require incremental upfront investment on initiation. Whilst there is no current financial year requirement, with one eye on exploiting opportunities for future financial years this variation provides management greater flexibility to deliver on these leads and on other growth opportunities that will contribute to future performance."

Enquiries:

 
 Collagen Solutions Plc 
 Jamal Rushdy, CEO                                                     Via Walbrook 
 Hilary Spence, CFO 
 
 Cenkos Securities Plc (Nominated 
  Adviser and Broker) 
 Steve Cox (Corporate Finance)                                   Tel: [phone] 
 Stephen Keys 
 
 Walbrook PR Ltd                      Tel: [phone] or [e-mail] 
 Anna Dunphy                                                     Mob: [phone] 
 Helen Cresswell                                                 Mob: [phone] 
 
 

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November 05, 2018 02:00 ET (07:00 GMT)