Guildford, UK, 26 November 2009: ReNeuron Group plc (LSE: RENE.L; “the Company”) announces that it has secured a two-year equity funding facility up to £5 million from Matrix Corporate Capital LLP (“Matrix”), the Company’s joint broker.
The Flexible Use Small Capital Increase Agreement (FUSCIA) will enable the Company to service its ongoing working capital requirements by drawing on this facility, as required, over the next two years. The Company will control the timing and amount of any draw-down and is under no obligation to make any such draw-down. If a draw-down is made, the Company will issue new Ordinary Shares to Matrix at a price per share calculated according to a formula based on the daily trading volume of the Company’s Ordinary Shares, and their volume-weighted average price, over relevant trading periods. The facility also incorporates an over-allotment option to enable larger draw-downs to be made, should market conditions allow at the time.
In the absence of any funding from other sources and allowing for the Company’s existing cash resources, the facility will provide sufficient working capital to fund the Company’s current operations through to mid-2011, if fully utilised over that period. The Company will, however, continue to seek additional funding from other sources where appropriate over this period, including project-related grant applications as well as further equity-based finance.
Michael Hunt, Chief Executive Officer of ReNeuron, said:
“We are delighted to have secured this funding facility from Matrix. The flexible structure of the facility matches ReNeuron’s requirements extremely well at this time. The facility provides a minimally dilutive, stand-by source of ongoing working capital for the Company, to be drawn down as and when needed. The facility will operate in a way that will capitalise on the increasing average trading volumes we have seen in the Company’s shares over the past year, as well as the significant progress we expect to report in the business over the next two years. The ability to draw down funds under the facility greatly reduces the financial risk in the business and the facility is being provided by an institution with whom the Company already has an established broking relationship.”
Enquiries:
Michael Hunt, Chief Executive Officer
ReNeuron Group plc +44 (0) 1483 302560
Jonathan Birt, Susan Quigley
Financial Dynamics +44 (0) 20 7831 3113
Simon Leathers, Emma Earl
Daniel Stewart & Company plc +44 (0) 20 7776 6550
Alastair Stratton, Tim Graham
Matrix Corporate Capital LLP +44 (0) 20 3206 7000
About ReNeuron
ReNeuron is a leading, UK-based stem cell business. Its primary objective is the development of stem cell therapies targeting areas of significant unmet or poorly met medical need.
ReNeuron has received regulatory and conditional ethical approvals to commence a Phase I clinical trial in the UK with its lead ReN001 stem cell therapy for disabled stroke patients. The Company is developing stem cell therapies for a number of other conditions, including peripheral arterial disease and diseases of the retina.
ReNeuron has also developed a range of stem cell lines for non-therapeutic applications – its ReNcell® products for use in academic and commercial research. The Company’s ReNcell®CX and ReNcell®VM neural cell lines are marketed worldwide under license by USA-based 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.
This announcement contains forward-looking statements with respect to the financial condition, results of operations and business achievements/performance of ReNeuron and certain of the plans and objectives of management of ReNeuron with respect thereto. These statements may generally, but not always, be identified by the use of words such as “should”, “expects”, “estimates”, “believes” or similar expressions. This announcement also contains forward-looking statements attributed to certain third parties relating to their estimates regarding the growth of markets and demand for products. By their nature, forward-looking statements involve risk and uncertainty because they reflect ReNeuron’s current expectations and assumptions as to future events and circumstances that may not prove accurate. A number of factors could cause ReNeuron’s actual financial condition, results of operations and business achievements/performance to differ materially from the estimates made or implied in such forward-looking statements and, accordingly, reliance should not be placed on such statements.