Date: 2013-07-22
Type of information: Private placement
Company: ReNeuron (UK)
Investors: Welsh Government (UK) Invesco Perpetual (UK) Abingworth (UK)
Amount: £33 million (€38.3 million)
Funding type: private placement, grant package
Planned used: The overall funding package will be used to take all of ReNeuron\'s 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 will also allow ReNeuron to take control over the manufacture of its stem cell therapy candidates as they get closer to market.
Others: * On July 22, 2013, ReNeuron has 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 inflection.
• £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 mid-market 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 non-executive 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.
Therapeutic area: Regenerative medicine - Neurological diseases
