ReNeuron Announces £33 Million Financing Package
News Jul 22, 2013
ReNeuron Group plc announced that it has raised a total of £33 million in a financing package that transforms the Company’s prospects and helps position it as a global leader in stem cell development.
•£25.35 million (before expenses) of firm commitments to be raised through an
oversubscribed placing of 1,014,000,000 Placing Shares at an Issue Price of 2.5p to
fund its therapeutic programmes through Phase II trials and consequent value
•£7.8 million to be provided through a grant package from the Welsh Government to
establish a cell manufacturing and development facility in South Wales for late stage
clinical and commercial product requirements. The Company will move its principal
operations to this facility as it is phased in over the next two years.
•Shareholder register transformed with participation of major new life science and
generalist investors, including Invesco, Abingworth and the Wales Life Sciences
Investment Fund LP, alongside existing holders.
•Issue Price represents a 17.4 per cent discount to the closing mid-market price of an
Ordinary Share on 19 July 2013, being the last Business Day prior to this
announcement. Issue Price represents a 3.1 per cent discount to the average midmarket
price for the last 20 Business Days prior to this announcement.
•The Directors have each agreed to subscribe for shares in the Placing, amounting to a
subscription of £110,000 in aggregate.
•Renowned Welsh life sciences entrepreneur, Sir Chris Evans, to be appointed as a nonexecutive
director of the Company upon closing of the Placing.
Completion of the proposed firm Placing is subject inter alia to shareholder approval, which will be sought at a General Meeting of the Company to be held at the offices of Covington & Burling LLP, 265 Strand, London, WC2R 1BH, at 10.30 a.m. on 7 August 2013. Dealings in the New Ordinary Shares issued in the firm Placing are expected to commence shortly thereafter.
A circular providing further details of the Placing will be sent to Shareholders later today. Once it has been posted, a copy of the Circular will be available on the Company’s website at www.reneuron.com.
Update on the Company’s therapeutic programmes
The Company has today announced its preliminary results for the year ended 31 March 2013, within which the Company has given an update on its therapeutic programmes and other activities.
Edwina Hart, the Welsh Government’s Minister for Economy, Science and Transport, said:
"I am delighted to be welcoming ReNeuron to Wales. Cardiff University has always been one of the leading centres in the UK for both stem cell and neuroscience research, which was recently strengthened by the appointment of Professor Yves Barde to the Research Chair in Neurobiology as part of our Sêr Cymru initiative.
"This is the second investment made by the Wales Life Sciences Investment Fund, a key component in our strategy to support the growth of the life sciences sector in Wales – one of our priority sectors with the potential to make a significant contribution to the Welsh economy."
Michael Hunt, Chief Executive Officer of ReNeuron, said:
“We are delighted with the support provided to us in this fundraising, both by the participating institutional investors, including specialists in the life sciences sector, and the Welsh Government. The overall funding package will transform the financial position of our business and its future prospects, and should allow us to take all of our therapeutic programmes through a Phase II proof-of-concept clinical study and to value inflection through commercial deals over the next three years.
“The Welsh grant package also enables us to take control over the manufacture of our stem cell therapy candidates as they get closer to market. We look forward to working with the Welsh Government to become part of a larger advanced-therapy manufacturing initiative to be established in South Wales over the coming years.”
Two Proteins Dictate Visual System Axon StabilizationNews
Scientists have made an important discovery concerning the development of layer-specific axonal connections in the developing visual system of Drosophila flies.READ MORE
Metabolomic Profiling Identifies Taurine as New MS TherapeuticNews
New research suggests that administering taurine, a molecule naturally produced by human cells, could boost the effectiveness of current multiple sclerosis (MS) therapies. The discovery also highlights the potential for a technique called “metabolomic profiling,” which can identify useful endogenous metabolites the body already makes in small quantities, such as taurine, for new applications in drug therapies.READ MORE