Corporate Update

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	[phone] or
Stephen Cork, Joint Administrator	[e-mail]
Mark Smith, Joint Administrator
ReNeuron	www.reneuron.com/investors
Iain Ross, Executive Chairman	Via Walbrook PR
Allenby Capital Limited (Nominated Adviser and Broker)			[phone]
James Reeve/George Payne/Dan Dearden-Williams (Corporate Finance)
Stefano Aquilino/Kelly Gardiner (Sales & Corporate Broking)

 

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