REG - ReNeuron Group plc - Corporate Update

ReNeuronAnnouncement

02/08/2024 12:30

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RNS Number : 0291Z  ReNeuron Group plc  02 August 2024

2 August 2024

 

ReNeuron Group plc

("ReNeuron" or the "Company")

 

Corporate Update

 

ReNeuron Group plc (in administration) (AIM: RENE), a UK based leader in stem
cell derived exosome technologies, provides the following corporate update in
regards the Company's ongoing administration process ("Administration
Process").

 

Update on Creditor Position

 

The Board of the Company took the decision to appoint Stephen Cork and Mark
Smith of Cork Gully LLP as joint administrators to the Company (the "Joint
Administrators") on 20 March 2024. Following their appointment, the Joint
Administrators have been in discussion with ReNeuron's main creditors to the
clarify the liabilities of the Company and ascertain the Company's financial
solvency in light of its current cash resources. To date, there is a
discrepancy between the amount the Company is able to pay to its creditors in
settlement of the total liability to them and the quantum that the creditors
are seeking.

 

Update on Staff

 

As part of the Administration Process, and in order to preserve value for
creditors, the Joint Administrators have undertaken a cost rationalisation
which has included, inter alia, the redundancy of several of the Company's
employees as well as other cost cutting measures. Certain members of key
Senior Management, including the Board of Directors and Randolph Corteling
(Chief Scientific Officer) have remained with the business and continue to
support the Joint Administrators.

 

Update on Financing Discussions

 

The Company, with the assistance of its brokers, have been seeking to identify
potential investors that would be willing to invest in new equity capital to
enable the Company to continue to trade as a going concern following an exit
from administration (the "Proposed Fundraise"). Whilst discussions remain
ongoing with potential investors, it is anticipated that completion of the
Proposed Fundraise would be conditional on the Company exiting administration
retaining sufficient funds to settle all of its known creditors, such that any
new funds raised from investors could be used by the Company for its working
capital requirements going forward post administration.

 

There can be no guarantees as to the outcome of the ongoing discussions with
creditors and potential investors. Further updates will be provided in due
course.

 

Enquiries:

 

 Cork Gully LLP                     +44 (0)20 7268 2150 or
 Stephen Cork, Joint Administrator  reneuron@corkgully.com
 Mark Smith, Joint Administrator

 ReNeuron                           www.reneuron.com/investors (http://www.reneuron.com/investors)
 Iain Ross, Executive Chairman      Via Walbrook PR

 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)

 

 

 

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