ReNeuron plans L5.5 million fundraising

Guildford, UK-based stem cell therapy firm ReNeuron says it will place 18,333,333 new ordinary shares of 1 pence each, credited as fully-paid at a price of 30 pence to raise L5.5 million ($10.8 million) before expenses. The news sent the firm's share price 6.6% higher to 36.5 pence on February 6.

The proceeds of the placing will be used to provide funding to enable ReNeuron to progress its ReN001 stem cell therapy for stroke into the clinic, as well as accelerating the development of the firm's other therapeutic programs.

Michael Hunt, chief executive, commented: "we are delighted to have raised the funds necessary to drive our transition to a clinical-stage stem cell development company. The fundraising provides the company with a strong financial base, which we intend to convert into solid clinical achievement in stroke and accelerated development of a highly-promising pipeline of stem cell therapies addressing other significant areas of unmet medical need."