Guildford, UK, 6 February 2007: ReNeuron Group plc today announces that it proposes to place 18,333,333 new ordinary shares of 1p each credited as fully paid at a price of 30p per share, to raise £5.5 million before expenses. Collins Stewart Europe Limited acted as nominated adviser and broker to the Company in connection with the placing.
The Directors intend that the proceeds of the placing be used to provide funding to enable ReNeuron to progress its ReN001 stem cell therapy for stroke into the clinic as well as accelerating the development of the Company’s other therapeutic programmes.
Michael Hunt, Chief Executive Officer of ReNeuron, said:
“We are delighted to have raised the funds necessary to drive our transition to a clinical stage stem cell development company. The fundraising provides the Company with a strong financial base which we intend to convert into solid clinical achievement in stroke and accelerated development of a highly promising pipeline of stem cell therapies addressing other significant areas of unmet medical need.”
In conjunction with the placing the Company also proposes to issue 771,368 new ordinary shares to StemCells, Inc. (SCI) fully paid up as to nominal value pursuant to the term of the subscription and share exchange agreement between, inter alia, the Company and SCI dated 5 July 2005 (as amended). A total of 19,104,701 new ordinary shares are therefore expected to be issued pursuant to the placing and the SCI issue, with the shares being admitted to trading on AIM on 12 February 2007. Such new ordinary shares will rank in full for all dividends and otherwise pari passu with all existing ordinary shares.
In addition, in connection with the placing the Company proposes to issue 688,145 warrants to subscribe new ordinary shares to Collins Stewart. The warrants have a three year exercise period and are exercisable at a price of 30p per ordinary share.
Notes to editors
ReNeuron is a leading, UK-based adult stem cell therapy business. It is applying its novel stem cell platform technologies in the development of ground-breaking stem cell therapies to serve significant and unmet or poorly-met clinical needs.
ReNeuron has used its c-mycERTAM technology to generate genetically stable neural stem cell lines. This technology platform has multi-national patent protection and is fully regulated by means of a chemically-induced safety switch. Cell growth can therefore be completely arrested prior to in vivo implantation.
ReNeuron has filed for approval to commence initial clinical studies in the US with its lead ReN001 stem cell therapy for chronic stroke disability. This represents the world’s first such filing concerning a neural stem cell treatment for a major neurological disorder. ReNeuron has also generated pre-clinical efficacy data with its ReN005 stem cell therapy for Huntington’s disease, a genetic and fatal neurodegenerative disorder that affects around 1 in 10,000 people. This programme is in pre-clinical development. In addition to its stroke and Huntington’s disease programmes, ReNeuron is developing stem cell therapies for Parkinson’s disease, Type 1 diabetes and diseases of the retina.
ReNeuron has also leveraged its stem cell technologies into non-therapeutic areas � its ReNcellTM range of cell lines for use in research and in drug discovery applications in the pharmaceutical industry. ReNeuron’s ReNcellTM CX and ReNcellTM VM neural cell lines are marketed worldwide under license by Millipore Corporation.
ReNeuron’s shares are traded on the London AIM market under the symbol RENE.L.
Further information on ReNeuron and its products can be found at www.reneuron.com.
Data sources: UK Stroke Association; American Stroke Association.
Michael Hunt, CEO
Tel: 44 (0)1483 302 560
David Yates / Nicola Daley
Tel: 44 (0)20 7831 3113
The terms �ReNeuron’, �the Company’ or �the Group’ used in this statement refer to ReNeuron Group plc and/or its subsidiary undertakings, depending on the context.