New York, Sept. 15 - ReGen Therapeutics plc said it placed £1.556 million of shares through J.M. Finn & Co. and obtained a £2 million committed share finance facility from Headstart Group.
Of the total of new shares placed, 89 million at 1p each were sold in a firm placing, raising £890,000.
The remaining 66.6 million shares, also at 1p per share, and to raise £666,000 were placed conditional on shareholder approval. An extraordinary general meeting will be held on Oct. 10 to request that approval.
If all the shares are approved, ReGen will have 499,741,942 shares outstanding on Oct. 13.
Part of the placing was sold to directors. Peter Garrod bought 22.5 million shares, Percy Lomax bought 0.5 million, Martin Small bought 0.9 million, Norman Lott bought 0.15 million and Tim Shilton bought 0.5 million.
"This fundraising will enable ReGen to continue its development program," Lomax said in a news release. He noted that the company expects to generate revenue from Colostrinin in 2006.
Under the £2 million equity line, ReGen can draw down up to £50,000 at a time at a price of 95% of the lowest closing bid price of the company's ordinary shares in the 15 trading days after ReGen notifies Headstart of the draw.
The facility runs for three years.
In return for the facility, ReGen paid Headstart £30,000 in stock and will pay a further £30,000 after one year.
ReGen will also, subject to shareholder approval, issue warrants for 4 million shares to Headstart, exercisable at 1.65p per share. The warrants expire on Sept. 14, 2008.
ReGen is a London-based pharmaceutical company developing a treatment for Alzheimer's disease. It is focusing on Colostrinin and its constituent peptides.
Share placement
| Issuer: | ReGen Therapeutics plc
|
| Issue: | Ordinary shares
|
| Amount: | £1.556 million (£890,000 firm, £666,000 conditional)
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| Shares: | 155,600,000 (89,000,000 firm, 66,600,000 conditional)
|
| Price: | 1p
|
| Broker: | J.M. Finn & Co.
|
| Announcement date: | Sept. 15
|
| Stock price: | 1.25p at close Sept. 15
|
|
|
| Equity line of credit
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| Issuer: | ReGen Therapeutics plc
|
| Issue: | Committed share finance facility
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| Amount: | £2 million
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| Tenor: | 3 years
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| Price: | 95% of the lowest closing bid price of company's ordinary shares in the 15 trading days after ReGen notifies Headstart of the draw
|
| Warrants: | For 4 million shares
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| Warrant strike price: | 1.65p
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| Warrant expiration: | Sept. 14, 2008
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| Investor: | Headstart Group
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| Settlement date: | Sept. 14
|
| Announcement date: | Sept. 15
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| Stock price: | 1.25p at close Sept. 15 and at close Sept. 14
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