Sydney, Australia, Jan 31, 2020 - (ABN Newswire) - Regeneus Ltd (ASX:RGS.AX - News) (Regeneus or the Company), a clinical-stage regenerative medicine company, releases its quarterly cashflow report and review of operational activities for the period ending 31 December 2019 (Q2 FY20).
During the quarter, the Company and AGC terminated their exclusive manufacturing licence and joint venture agreement, a mutual decision which provides Regeneus with the flexibility to conclude commercial licence discussions with partners who intend to manufacture and commercialise Progenza OA in Japan. Following termination, AGC is entitled to be issued with 22,794,531 ordinary shares in Regeneus. On issue of the shares, AGC will be the largest single shareholder in Regeneus.
Regeneus' $5.5 million private placement, first announced in August 2019, was completed during the quarter, with a Japanese-based institutional investor taking up the shortfall of $775,029. The completion of the non-renounceable rights issue, together with the streamlined operations and the completion of a commercial deal allows Regeneus to be sufficiently funded to commercialisation in Japan. The Company is pleased to complete the rights issue with the support of an institutional investor with significant experience in the Japanese life sciences and regenerative medicine space.
In December, the Company received a $50K innovation grant from the Department of Industry, Innovation and Science for research into how mesenchymal stem cells (MSCs) can be used in pain management. The study will be conducted in partnership with Monash University and the funding matches the project's spending over 12 months. This study will assist Regeneus with its strategy to address the global neuropathic pain market.
Regeneus continued its various cost containment initiatives over the quarter, which is anticipated to result in reduced future costs of $250K a month.
Commenting on the activities during the quarter, Regeneus CEO Leo Lee noted, "This was a busy quarter where we completed our private placement and made important decisions regarding our approach to the commercialisation of Progenza OA in Japan."
"We believe these decisions set us up in a solid position to conclude commercial license discussions with partners who intend to manufacture and commercialise Progenza OA," he added.
"We are also pleased to bring on AGC and the new Japan-based institutional investor as shareholders, underscoring their belief in our core technologies and ability to execute."
To view the quarterly report, please visit:
About Regeneus Ltd:
Regeneus Ltd (ASX:RGS.AX - News) is a Sydney-based clinical-stage regenerative medicine company using stem cell technologies to develop a portfolio of novel cell-based therapies to address significant unmet medical needs in the human health markets with a focus on osteoarthritis and other musculoskeletal disorders, neuropathic pain and dermatology.
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