City considers another $500K injection for Regenmed
Non-profit organization says money will help fund expansion plans at its tissue bank
A bone and tissue bank in Thunder Bay will have to wait a few weeks before hearing if the city will cut it a cheque for $500,000.
Regenmed asked council for the money at Monday night’s meeting, to help fund expansion plans.
That's on top of another $500,000 grant councillors made to the company last summer.
Bob Thayer, the CEO of Regenmed, said he's only asked the city for additional funding, not the Ministry of Health.
"They [Ministry of Health] haven't turned us down," Thayer said. "We just haven't asked."
Thayer said the funding would be used to hire more staff and create a marketing plan.
Many councillors questioned whether they should hand over more money either as loan or a grant.
Rebecca Johnson wanted more details from the company's business plan.
"I'd like to know what their projected revenue is," she said. "Dr. Thayer identified that 2013 is when they would be able to be self sustaining."
City administration will now prepare a report, advising council about whether it should spend the money, or tell Regenmed to ask the province for more funding.
- Thunder Bay has spent about $600,000, in total, including money from the Community Economic Development Corp.
- Regenmed received a grant a few years ago from the NOHFC and FedNor.
- Regenmed operates as a non-profit organization.
- CEO Bob Thayer said he'd prefer the money in a grant, because you don't have to give the money back, but said a loan will also do.
- The company has struggled with getting tissue from donors, but, that problem seems to be easing.
- Regenmed has also had some problems selling their tissues.
- The company's goal is to sell its products in the US, and is working on the certifications required.