TILS.L Regulatory News (TILS)

15 Sep 2005 08:00

ReGen Therapeutics PLC15 September 2005 ReGen Therapeutics Plc Date 15 September 2005 Committed Share Finance Facility ReGen Therapeutics Plc ("ReGen" or the "Company") announces that on 14thSeptember 2005 it entered into an agreement with the Headstart Group of funds ("Headstart") under which Headstart will make available to the Company acommitted share finance facility of up to £2,000,000 (the "Headstart Facility"). Pursuant to the terms of the Headstart Facility, Headstart has agreed, whencalled upon by the Company, to subscribe for, or purchase, new ordinary sharesin the capital of the Company ("Ordinary Shares") to the value of up to, inaggregate, £2,000,000. The Headstart Facility is available at any time up to 3years from the date a Committed Share Finance Facility Agreement is entered intoby the Company and Headstart and can be drawn down by the Company in incrementsof up to £50,000. The subscription price for an Ordinary Share shall be equalto 95% of the lowest closing bid price of an Ordinary Share in the fifteentrading days following the date on which the Company notifies Headstart that itwishes to make a draw down under the Headstart Facility. In consideration for Headstart making available the Headstart Facility, theCompany has agreed to pay Headstart a one-off underwriting commission of £60,000payable by the issue of Ordinary Shares (on the basis of an agreed value perOrdinary Share of 1.35p, being the closing bid price on Wednesday 7th September2005). £30,000 of the underwriting commission was payable upon entering into theHeadstart Facility and the remaining £30,000 is payable on the first anniversarythereafter. Accordingly, application has been made for 2,222,222 OrdinaryShares to be admitted to trading on the AIM market. It is expected thatadmission to listing will become effective and that dealings in these shareswill commence on Tuesday 20th September 2005. In addition, the Company hasagreed, subject to shareholder approval, to issue warrants granting Headstartthe right to subscribe for up to 4,000,000 Ordinary Shares at a subscriptionprice of 1.65p per share, being a price equal to 110% of the closing bid priceof the Company's shares on 13th September 2005. Such warrants will beexercisable at any time on or before 14th September 2008. As the issue of theWarrants is subject to shareholder approval, ReGen will shortly send toshareholders a circular containing a notice convening an extraordinary generalmeeting of the Company (the "Circular") for 10.00 a.m. on 10 October 2005 (the "EGM") containing resolutions to, inter alia, approve the issue of the Warrants. Copies of the Circular will be available, for collection only, free of charge tothe public, from the Company, Suite 406, Langham House, 29-30 Margaret Street,London W1W 8SA during normal office hours on any day (Saturdays, Sundaysexcepted) from 19 September 2005 until 14 October 2005. - For further information, please contact:Andrew MarshallMarshall Robinson RoeTel No 020 7960 6007 This information is provided by RNS The company news service from the London Stock Exchange