26/03/2008
• Appointment of Alexander David Securities as new Broker
• Placing to raise £204,648 through placing of new ordinary shares
• An equity financing facility to raise up to £2m
ReGen Therapeutics Plc (‘ReGen’ or the ‘Company’, AIM: RGT) is pleased to announce that it has today appointed Alexander David Securities Limited (‘ADSL’) as the Company’s new broker, with immediate effect.
ReGen also announces that it has today placed, directly and through its new broker, 629,685 new ordinary shares of 10p each at 32.5p per share with existing investors (‘the Placing’) and as a result has raised £204,648 before expenses of the issue. The new ordinary shares, which will represent 5.78 per cent of the enlarged issued share capital of the Company, will rank pari passu in all respects with the existing ordinary shares in the Company.
Application will be made to the London Stock Exchange for the 629,685 new ordinary shares to be admitted to trading on AIM and dealings in the new ordinary shares are expected to commence on 31 March 2008.
Five of the Company’s directors are subscribing for new ordinary shares in the placing: Mr Percy Lomax is subscribing for 15,300 new ordinary shares making his total holding 53,787 shares, representing 0.49 per cent of the new enlarged share capital. Mr Martin Small is subscribing for 12,500 new ordinary shares making his total holding 58,320 ordinary shares, representing 0.54 per cent of the enlarged share capital. Mr Timothy Shilton is subscribing for 15,300 new ordinary shares making his total holding 26,966 ordinary shares, representing 0.25 per cent of the new enlarged share capital. Mr Keith Corbin is subscribing for 15,385 new ordinary shares making his total holding 46,435 ordinary shares, representing 0.43 per cent of the enlarged share capital. Dr Peter Garrod is subscribing for 125,000 new ordinary shares making his total holding 882,500 ordinary shares representing 8.10 per cent of the enlarged share capital.
In addition ReGen has entered into a equity credit facility agreement with Duke Holdings Corporation Limited (‘Duke’) to provide a drawdown of capital in exchange for shares in the Company. Duke has offered ReGen an initial facility of £2m which is available in two tranches of £1m. Pursuant to this agreement ReGen has now issued a notice of an initial drawdown of up to£400,000 of shares, which may be split over a number of allotments to Duke. Further details as to the amount of shares to be issued under this initial drawdown will be released in due course.
Executive Chairman Percy Lomax commented, ‘We are pleased with the placing and activation of the drawdown facility which will provide funding of £604,648 in very uncertain financial market conditions. As sales of CogniSureTM build up, ultimately the Directors believe the Company will become self financing; however the Company is not yet at this point. This funding the Company is receiving will be used to continue the development of the exciting opportunities we have in the pharmaceutical sector.’
For further information, please contact:
Percy Lomax
ReGen Therapeutics Plc
Tel: 020 7153 4920
Roland Cornish/Felicity Geidt
Beaumont Cornish Limited
Tel No 020 7628 3396
David Scott/Nick Bealer
Alexander David Securities Limited
Tel: 020 7448 9800