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If Tissue Regenix Group is to survive it will soon need more cash. Despite share price performance since listing on Nasdaq, GW Pharmaceuticals directors appear to have been overpaid.

Tissue Regenix Group is a bio-tech/medical device company with a current market cap of £120m and negligible sales, so reported figures are of little help to potential investors except to check the amount of cash in the bank, make an estimate of the rate of cash burn and review cash raising options. For more cash there are three possibilities – another placing (clearly not the favourite option), the sale or licence of DermaPure and the outright sale of the company.

Examining the GW Pharmaceuticals’ report, any reasonable person would surely take the long term return from AIM flotation to, say December 2015, as a measure of the directors’ success. This is a 113% gain in 14 ½ years, just short of 6% pa compound, all achieved from an appreciating share price. In the directors’ opinion, however, 30.09.08 should be the base point, when the share price was 80% below the flotation price. This is what apparently justifies total board remuneration of £4.9m for 2015, plus options which, so far exercised, have given £5.6m. It is difficult to escape the conclusion that the directors have been overpaid for the shareholder return achieved to date.

Read UKSA's full reports on Tissue Regenix Group and GW Pharmaceuticals

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