- Regenerative medicine company, Regeneus, now has enough funds to go ahead with commercialisation in Japan
- The company has made a share shortfall placement of almost 9.5 million shares, to a Japanese life-science investor
- Combined with a Non-Renounceable Rights Issue and a private placement, this $750,000 placement brings the total raised to $5.5 million
- Regeneus plans to commercialise Progenza, a cell therapy technology that treats osteoarthritis, by 2023
- Shares are up 43.9 per cent after the news, trading for 9.5 cents each
Regeneus (RGS), today announced a $755,029 share placement with a Japanese institutional investor as part of its funding to commercialise in Japan.
A share shortfall of 9,437,872 shares was placed with the investor, who has experience with regenerative medicine in Japan, at a price of $0.08 per share.
The shortfall shares were part of a Rights Issue and, in addition to $2.34 million from a private placement, brings the total capital raised to $5.5 million. Regeneus CEO, Leo Lee said the placement is key to the company’s next step in Japan.
“The completion of the non-renounceable rights issue, together with our streamlined internal operations and pending Progenza licensing deal in Japan, Regeneus will be sufficiently funded to commercialisation in Japan,” he said.
Progenza is a cell therapy technology being developed to treat osteoarthritis and other musculoskeletal disorders. According to the company it also has the potential to treat other inflammatory disorders.
The Australian-based company is planning to continue clinical development, manufacturing and commercialisation of the product in Japan.
Regeneus has already reached a strategic collaboration and licensing agreement with AGC, a biopharmaceutical contract manufacturer in Japan. They will work together on the manufacture, clinical development and commercialisation of Progenza, specifically for the Japanese market.
Regeneus identified Japan as a key target market, in partly due to an existing accelerated approval process for regenerative medicine.
A Phase 1 trials of Progenza for osteoarthritis was completed successfully and preparations are underway for a Phase 2 clinical trial in Japan.
The market responded positively to the news, with shares up 43.9 per cent. They were trading for 9.5 cents each at 15:58 on November 19, 2029.