ReNeuron Group Plc. (RENE.L) announced its preliminary results for the year ended 31 March 2013. Loss for the year widened to 6.3 million pounds from the prior year's 6.2 million pounds. But loss per share narrowed to 0.8 pence from the previous year's 1.0 pence, reflecting a combination of an increased loss and the full year effect of the increase in ordinary shares in issue following the completion of the placing in April 2012.
Annual revenues declined to 17,000 pounds from last year's 40,000 pounds.
In a separate press release, ReNeuron Group announced that it has raised a total of 33 million pounds in a financing package that transforms the company's prospects and helps position it as a global leader in stem cell development.
The company said that it will raise about 25.35 million pounds (before expenses) through an oversubscribed placing of 1,014,000,000 Placing Shares at an Issue Price of 2.5 pence to fund its therapeutic programmes through Phase II trials and consequent value inflection.
The company stated that about 7.8 million pounds 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 said it will move its principal operations to this facility as it is phased in over the next two years.
The 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 pounds in aggregate.
The company noted that 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 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.
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by RTT Staff Writer
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