- Clinical-stage regenerative medicine company Regeneus (RGS) has secured up to $4.5 million in a three-stage placement of the company’s shares to New Life Sciences Capital
- The placement will be provided in three tranches, with funds used to accelerate work needed to kick off the company’s Progenza osteoarthritis (OA) phase two trial in the U.S.
- The Progenza OA phase two trial is anticipated to launch in Q2 2022 subject to the company securing further additional funding
- Regeneus shares are up 4.35 per cent, trading at 12 cents
Clinical-stage regenerative medicine company Regeneus (RGS) has secured up to $4.5 million in a three-stage placement of the company’s shares to New Life Sciences Capital.
The funding under the placements will be provided as an initial placement of $1,590,000 of shares to raise $1,500,000 within the next week, and a second placement of $1,590,000 of shares to raise a further $1,500,000 within the next six months.
A third placement of $1,500,000 worth of shares will be raised within the following 12 months, subject to consent from the investor and company.
The purchase price will initially be equal to 20 cents per share, representing a 74 per cent premium to the closing price of the company’s shares on May 6, 2021.
After July 6, the purchase price will reset to the average of the five-day volume-weighted average prices selected by the investor during the 20 consecutive trading days, less a 5 per cent discount.
Funds from the placement will be used to accelerate work needed to kick off the Progenza osteoarthritis (OA) phase two trial in the U.S., as well as general working capital needs.
The company is actively exploring options for additional funding to progress Progenza into phase two trials and beyond in the U.S. market, including non-dilutive public development funding opportunities, licensing and commercialisation partnerships, and potential future capital raising activity.
Regeneus says it is committed to pursuing all potential options to develop and commercialise Progenza for the U.S. market.
“The funds raised give us access to capital as we move forward to quickly complete the early preparatory work needed to be able to initiate a Progenza U.S. phase two trial,” said Regeneus CEO Karolis Rosickas.
“We are actively pursuing additional funding for the phase two trial and exploring strategic partnerships to develop Progenza for the U.S. market.”
The Progenza OA phase two trial is anticipated to launch in the second quarter of 2022, subject to the company securing further additional funding.
Regeneus shares are up 4.35 per cent, trading at 12 cents at 11:40 am AEST.