18/08/2009
ReGen announces that it has today entered into an exclusive test marketing agreement (the “Agreement”) with PRG Nutraceuticals for the retail distribution of Colostrinin™ in the United Kingdom. To date Colostrinin™ is marketed in the US, Canada, Australia Cyprus and Poland as a nutritional supplement to “support healthy brain ageing and cognition in humans”.
PRG Nutraceuticals aims to launch Colostrinin™ next month under the product name MemoryAid. The Agreement is for an initial term of six months and is on substantially the same commercial terms as the Company’s other test marketing agreements in other territories. If the test marketing is successful, PRG Nutraceuticals will then be made ReGen’s exclusive distributor for the United Kingdom.
Commenting on the Agreement Percy Lomax, Chairman and Chief Executive Officer of ReGen said:
“The Board has fully examined ways of getting into its home market and we believe that licensing to PRG Nutraceuticals is the most cost effective way of achieving this with no dilution to shareholders. ReGen hopes that the availability of Colostrinin™ in its home market will give a significant boost to sales.”
Mr Peter Garrod, Chairman of PRG Neutraceuticals (and a Director of the Company) said:
‘I am very pleased to further demonstrate support for and commitment to the future of ReGen by the launch of Colostrinin™ in the United Kingdom a fruition long desired by the majority of shareholders. PRG Nutraceuticals is providing a vehicle by which the product can be sold in another major market and is very excited by the prospect of Colostrinin™ finally achieving the recognition it so richly deserves. PRG Nutraceuticals has engaged the services of a team of consultants well versed and experienced in marketing similar products. The aim is to launch Colostrinin™ in September 2009 under the product name MemoryAid. The domain Memoryaid.com will be live for all enquiries and information and will be updated and finalised over the next two weeks.”
As the entire issued share capital of PRG Nutraceuticals is beneficially owned by Peter Garrod, a director of the Company, the proposed Agreement is a related party transaction for the purposes of Rule 13 of the AIM Rules. Accordingly, the Agreement has been considered and negotiated by the independent directors of the Company being Percy Lomax, Norman Lott, Tim Shilton and Martin Small (together the “Independent Directors”). The Independent Directors, having consulted with Beaumont Cornish Limited, the Company’s nominated adviser, unanimously consider the terms of the Agreement are fair and reasonable insofar as the Company’s Shareholders are concerned.
In forming their opinion of the Agreement, the Independent Directors have considered the available options to roll-out Colostrinin™ as a nutraceutical in the United Kingdom bearing in mind the Board’s objective to minimise expenditure. The Independent Directors considered that the financial risks to the Company of pursuing the development of Colostrinin™ in the United Kingdom on its own were too great and therefore spent considerable effort in identifying a partner to develop the product, while at the same time relieving ReGen of the need to make any cash investment and to eliminate the cash flow risks of test marketing. The Board believes that the proposed arrangements with PRG Nutraceuticals will enable the Company to develop its interests in the United Kingdom with an effective partner at no financial risk to the Company.
For further information:
ReGen Therapeutics Plc
Percy Lomax
Tel: 020 7153 4920
Beaumont Cornish Limited
Roland Cornish/Felicity Geidt
el: 020 7628 3396
Alexander David Securities
Nick Bealer/David Scott
Tel: 020 7448 9820
PRG Nutraceuticals
Peter Garrod
Tel: 01580 891349
Mobile: 077857 40421