Stem cell company ReNeuron gets backing from Welsh government

UK-based stem cell company ReNeuron (AIM: RENE) will relocate to Wales after Arthurian Life Sciences, manager of the new £100 million ($152.6 million) Wales Life Sciences Investment Fund, has arranged a £12.8 million funding commitment from the Welsh government.

The funding boost is part of a £33million financing package announced today with £25.35 million (before expenses) of firm commitments to be raised through an oversubscribed placing of 1,014,000,000 Placing Shares at an issue price of 2.5 pence to fund its therapeutic programs through Phase II trials and consequent value inflection.

The funding package from the Welsh government is made up of £5 million direct equity investment from the Wales Life Sciences Investment Fund and a £7.8 million commitment of non-dilutive grants from the government to establish a cell manufacturing and development facility in South Wales for late stage clinical and commercial product requirements. The company will move its principal operations to this facility as it is phased in over the next two years.