ReNeuron announces £5.5 million fundraising
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... |
