Regeneus IPO Closes Fully Subscribed

Regeneus IPO Closes Fully Subscribed

Wednesday, 11 September 2013

Regeneus Ltd announces today that its Initial Public Offering (IPO) has closed fully subscribed.

Shares are expected to commence trading on the Australian Securities Exchange under the code “RGS” on Tuesday 17 September 2013. 42 million new shares will be issued and the combined market capitalisation at the Offer price of A$0.25 per share will be A$45.9 million.

BBY Limited played an instrumental role as joint manager in the Offer alongside Peloton Capital and successfully raised A$10.5 million in cash proceeds. The capital raised will go towards funding Regeneus’ commercialization strategy, further R&D initiatives, capital expenditures and working capital.

Regeneus Ltd is a regenerative medicine company that is commercialising cell-based therapies for treating conditions such as arthritis, in humans and animals. The company’s human products are currently used in 4 specialist clinics and its animal products in 70 veterinary clinics in Australia, and Regeneus expects to generate sales in excess of A$1.5M in Financial Year 2013. Regeneus has the potential to substantially grow revenue over the next two years by increasing the penetration of the Australian market of its currently marketed products, and by launching its human HiQCell product in overseas markets with similar regulatory environments to Australia, such as the UK and Singapore.

Potential drivers of longer term revenue growth include

i)              seeking FDA approval of its CryoShot veterinary product;
ii)             developing a secretions-based product for skin conditions; and
iii)            a recent fast track approval process for stem cell therapies has been introduced in Japan (second-largest Pharma market in the world) which could enable Regeneus to launch a human off-the-shelf product in Japan in 3-4 years, at a modest cost.

Stem cell companies are attracting a lot of interest at the moment after the spectacular stock market debut of ReproCell in Japan. Stock in ReproCell commenced trading at 5x its IPO issue price in June 2013, and is still trading at around 3x the IPO price. ReproCell has a current market cap of AUD $857 million. BBY is proud to have been a front-runner in this rapidly evolving market.

ENDS

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