REG - ReNeuron Group plc - Corporate update and suspension of trading on AIM

ReNeuronAnnouncement

05/02/2024 14:30

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RNS Number : 0651C  ReNeuron Group plc  05 February 2024

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 which is part of UK law by virtue of the European
Union (Withdrawal) Act 2018.

 

5 February 2024

 

ReNeuron Group plc

("ReNeuron", the "Group" or the "Company")

 

Corporate update and suspension of trading on AIM

 

ReNeuron Group plc (AIM: RENE), a UK based leader in stem cell derived exosome
technologies, provides the following update in relation to its current
business development, financing discussions and working capital position.

 

On 8 November 2023, the Group announced its Interim Results for the six months
ended 30 September 2023 ("Interim Results"). At the time, the Board stated
that the outlook for the business remained positive provided it could retain
its' highly dedicated team of scientists, further develop and verify the
CustomEX™ exosome delivery platform and conclude validating industry
partnerships.

 

As also announced in the Interim Results, potential corporate actions that
were under consideration by the Board included raising additional equity
financing and/or securing a financing facility and/or entering into M&A
discussions. The Group also noted in the Interim Results that as at 30
September 2023, the Group had cash, cash equivalents and bank deposits of
£5.1 million and that the Group's latest internal projections (assuming no
new revenues or funding) meant there was a cash runway to April 2024, ahead of
which point further revenues and/or a capital injection would be required.

 

In the intervening period, despite great scientific progress having been made
in further developing and exemplifying the CustomEX™ exosome delivery
platform and progressing several ongoing third-party business development
discussions, the Group has not yet been able to conclude a validating, revenue
generating industry partnership nor been able to secure additional equity
funding. Accordingly, throughout the period the Group has been carefully
managing its working capital, but it is now in a highly constrained financial
position and requires additional financing urgently, in order to continue as a
going concern. In the absence of any additional financing being available in
the immediate term, the Group now needs to take steps to preserve and
maximise value for its creditors.

 

Whilst the Group continues to explore a number of corporate options, including
seeking to realise value for its physical and intellectual assets, the Board
recognises that in the absence of an immediate injection of capital and in
view of the current financial uncertainty, it needs to put staff at risk of
redundancy, initiate discussions with its creditors and establish the precise
solvency status of the business. Should the Company fail to achieve a solution
in the short term, the Board would have no option but to place the Company
into administration. Should administrators be appointed, it is not known how
much, if any, value would be returned to shareholders.

 

In light of the above, the Company has requested a suspension of trading in
its ordinary shares on AIM pending clarification of its financial position.
Trading in the Company's ordinary shares has been suspended at 2:30
p.m. today and further updates will be provided in due course.

 

Enquiries:

 

 ReNeuron                               www.reneuron.com/investors (http://www.reneuron.com/investors)
 Iain Ross, Executive Chairman          Via Walbrook PR
 John Hawkins, Chief Financial Officer

 Allenby Capital Limited (Nominated Adviser and Broker)                                    +44 (0)20 3328 5656
 James Reeve/George Payne/ Dan Dearden-Williams (Corporate Finance)
 Stefano Aquilino/Kelly Gardiner (Sales & Corporate Broking)

 Walbrook PR (Media & Investor Relations)                        +44 (0)20 7933 8780 or reneuron@walbrookpr.com
                                                                 (mailto:reneuron@walbrookpr.com)
 Paul McManus / Alice Woodings          +44 (0)7980 541 893 / +44 (0)7407 804 654

 

About ReNeuron

ReNeuron has developed a proprietary stem cell-derived, exosome-based, drug
delivery platform with customisable cellular targeting capabilities for the
delivery of complex drug modalities.

 

Through the generation of several unique and scalable exosome producer cell
lines, our CustomEX™ platform can be optimised for specific tissues targets
and payloads leading to improvements in therapeutic outcome and a reduction in
off-target effects. ReNeuron offers a delivery mechanism for a variety of
payloads such as siRNA, mRNA, proteins, small molecules and genes. Through its
conditionally immortalised induced pluripotent stem cell (iPSC) platform, the
Company can make allogeneic tissue cells of choice and has the potential to
produce exosomes with tissue specific targeting ability.

 

ReNeuron's shares are traded on the London AIM market under the symbol RENE.L.
For further information visit www.reneuron.com (http://www.reneuron.com/)

 

This announcement contains forward-looking statements with respect to the
financial condition, results of operations and business
achievements/performance of ReNeuron and certain of the plans and objectives
of management of ReNeuron with respect thereto. These statements may
generally, but not always, be identified by the use of words such as "should",
"expects", "estimates", "believes" or similar expressions.

 

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