18/11/2009
The Company have today posted to shareholders a Notice of General Meeting (“the Meeting”) to grant authority to issue shares. The Meeting will be held at 11.00am on 7 December 2009 at the offices of Alexander David Securities Limited, 10 Finsbury Square, London EC2A 1AD. The Notice will be available on the website:
http://www.regentherapeutics.com/
In the Notice, the Chairman wrote to Shareholders as follows:
“As the most recent Interim figures show, ReGen is not yet trading profitably and additional funds will therefore be needed to sustain the Company until such time that it does become profitable. The Directors are mindful of dilution and have drastically reduced costs wherever possible including at least halving Directors salaries. Thus, so far this year the Company has raised £688,185 compared with £2.49m in 2007.
The Company has been encouraged at the level of demand displayed in its recent share placings. It also noted that the placings were with long term investors which the Company believes has meant that the share price has remained stable following the placings. The Company has identified, from the placings and from further conversations, a significant number of potential additional long term investors who are willing to further fund the Company to profitability.
With regard to the on-going expansion of the ColostrininTM nutraceutical network, our existing distributors are continuing to work hard to develop their individual markets. PRG Nutraceuticals Ltd, the most recently appointed distributor, launched their MemoryAid version of the product in the UK market at the end of September. Unfortunately for ReGen it inevitably takes a great deal of time from initiating discussions with potential new distributors, through the announcement of their appointment, their satisfying local regulations prior to the commencement of sales, up until the point at which revenues start to filter through to ReGen. In past experience, this process rarely takes less than six months and usually takes over a year.
In consequence, whilst Shareholders may consider the lack of news on progress from the Company to be disappointing, in reality there is a great deal of activity and a huge effort being made by the entire management team to expedite the preparations for product launch in each sector.
Therefore, to continue to support the Company’s development and return to Shareholders, ReGen is seeking to renew Shareholder authority to take in additional investment to maintain the capital base into 2010. The Board wishes to be able to be in a position to consider promptly and effect appropriate funding proposals as and when they occur and is therefore now seeking to renew Shareholder authority to be able to issue new Ordinary Shares and/or other securities of the Company to facilitate future fundraisings and/or acquisitions of complementary businesses. The Board are requesting authority to issue up to 12,245,000 new Ordinary Shares for these specific purposes, which represents approximately 33 per cent. of the current issued share capital of the Company.
In addition, the Board is seeking renewal of their general authorities to issue new Ordinary Shares and/or other securities, such general authority being last granted to them at the Annual General Meeting of the Company held on 21 July 2009. The Board are requesting authority to issue up to 1,836,500 new Ordinary Shares, which represents approximately 5 per cent. of the current issued share capital of the Company.”
Contact:
Percy Lomax, ReGenTherapeutics Plc
Tel: 020 7153 4920
Roland Cornish, Beaumont Cornish Limited
Tel: 020 7628 3396
David Scott/Nick Bealer, Alexander Securities Limited
Tel: 020 7448 9820
Notice of General Meeting (296KB PDF)
Form of Proxy (84KB PDF)