(Alliance News) - Tissue Regenix Group PLC on Friday said it purchased an existing facility as part of phase 1 and 2 expansion plans.
The Leeds, England-based regenerative medical devices company bought the building it currently leases at its Universal City facility in Texas, having first occupied the site in 2021.
Tissue's initial lease came with a purchase option to buy the building at a pre-set price through November 2024.
Following a recent appraisal, the company concluded that the purchase option was below the fair market value of the property.
Tissue has financing for the entire acquisition price, with no cash down payment.
Chief Executive Officer Daniel Lee said: "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. "
This move precludes the initiation of the company's phase 2 expansion plans which are due to begin in the second half of 2024 and continue into the next year.
In phase 2 the company will acquire additional clean rooms, operational capacity and further office space.
Tissue Regenix shares were down 3.8% to 63.00 pence each in London on Friday afternoon.
By Elijah Dale, Alliance News reporter
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Tissue Regenix Group (TRX)