05 November 2018

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 31st October 2018 to 31st 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 £0.42million in principal against the total £3 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
Hilary Spence, CFO
Via Walbrook
Cenkos Securities plc (Nominated Adviser and Broker)
Steve Cox (Corporate Finance)
Stephen Keys
Tel: 0207 397 8900
Walbrook PR Ltd Tel: 020 7933 8780 or collagen@walbrookpr.com
Anna Dunphy Mob: 07876 741 001
Helen Cresswell Mob: 07841 917 679

 

About Collagen Solutions:

Collagen Solutions Plc is a global supplier, developer, and manufacturer of medical grade collagen, tissues, and related medical devices and components for use in regenerative medicine, medical devices and in-vitro diagnostics and research. The Company is also expanding its range of biomaterials-based finished medical devices based on its internal and acquired intellectual property for commercialisation with partners via licensing and distribution arrangements, including ChondroMimetic®. The Company's products are used in a wide variety of applications including orthopaedics, cardiovascular, dental, plastic surgery, wound healing, neurology and urology.

For more information go to: www.collagensolutions.com