ReNeuron Group - Case Update

ReNeuron Group, a Wales based leader in stem cell derived exosome technologies, has successfully emerged as a going concern after a nearly 12-month administration period.

Mark Smith and Stephen Cork of Cork Gully were appointed as joint administrators of the AIM-listed ReNeuron Group and three underlying UK subsidiaries (the Group) on 20 March 2024. At the time, the biotech company stated it was in a “highly constrained financial position” after not being able to secure an industry partnership or additional equity funding. The purpose of the administrations was to see if agreements with key creditors could be reached so that the company could be taken private and exit administration.

The administrators have achieved this purpose, having negotiated deals with government and regulatory authorities and settled creditor claims at a substantial discount compared to initial expectations. They referred in their previous progress report to a significant unsecured claim by the Welsh Government, which appears to have been settled.

During the period, the joint administrators worked closely with retained staff to minimise business disruption and safeguard core patents, which are critical assets for the Group’s post-administration growth strategy. They initially retained all staff, but gradually reduced headcount to four employees as certain non-core activities were wound down and non-essential equipment was decommissioned. This was done to lower the operational costs to a more attractive level for potential investors.

The company will now emerge from administration as a private biotech company focused on its stem cell line development expertise, IP and know-how. The company confirmed that it has sufficient working capital to support its operations for a minimum of 12 months and has already identified a number immediate licence and fee generating opportunities.

The joint administrators were assisted by Elkington and Fife, Isadore Goldman, Covington & Burlington and Fox Williams (legal), Gordon Brothers (valuations), WG Partners (financial advisors) and Allenby Capital (nominated advisor and broker in relation to the AIM listing), among others.