25th Mar 2009 07:00
25th March 2009
ReGen Announces Agreement to Distribute Colostrinin™ in Greece and the Balkans and Issue of Equity
ReGen Therapeutics Plc ('ReGen' or the 'Company') is pleased to announce that it signed yesterday an Agreement with Golgi Pharmaceuticals Ltd, Cyprus ('Golgi') to extend the current agreement which allows them to distribute Colostrinin™ in the Republic of Cyprus to include distribution in Greece and other Balkan countries.
As part of this arrangement Golgi are directly investing £28,000 in cash into ReGen in exchange for 700,000 shares priced at 4p, which represents 3.4 per cent of the enlarged share capital of the Company (20,580,550 ordinary shares), and will rank pari passu in all respects with the existing ordinary shares in the Company. The proceeds will be used for general working capital purposes. Application has been made to the London Stock Exchange for the new ordinary shares to be admitted to trading on AIM and dealings in the new ordinary shares are expected to commence on or around 30 March 2009.
To date Colostrinin™ is marketed in the US, Canada and Australia under the brand name CogniSure™* and in Cyprus under the brand name Cognase™** as a nutritional supplement to support healthy brain aging and cognition in humans. It is currently being test marketed in Poland under the brand name CogniSure™*** prior to a full launch in that country.
Commenting on this agreement Percy Lomax, Chairman and Chief Executive Officer of ReGen said :
'Golgi undertaking to distribute the product in further markets and finding the licensees for those markets is a crucial validation of Colostrinin™'.
Yiannis Pierides Chief Executive of Golgi said:
'We are delighted to be able to extend our relationship with ReGen after the successful launch of Cognase™ in Cyprus'.
*Colostrinin™ for use as a human nutraceutical is licensed and distributed in North America and Australasia to Metagenics Inc. of San Clemente, California (www.metagenics.com).
** Colostrinin™ is licensed and distributed in the Republic of Cyprus by Golgi Pharmaceuticals Ltd (www.healthybrainaging.com)
*** Colostrinin™ is being test marketed in Poland by Tagerr (www.cognisure.eu)
For further information:
Percy Lomax ReGen Therapeutics Plc Tel No 020 7153 4920
Roland Cornish/Felicity Geidt Beaumont Cornish Limited Tel No 020 7628 3396
Nick Bealer/David Scott Alexander David Tel No 020 7448 9820
Notes to Editors:
Colostrinin™ is derived from bovine colostrum a cow's first milk after birth and is currently produced in S Dakota, freeze dried in Oregon and tabletted and blistered at Metagenics Inc plant in California. Metagenics are the distributors in North America and Australia. If full current production and sales were achieved on North American margins revenue to the Company would be $10 million before relatively low head office expenses. It would be possible, by spending around another $550,000 to bring production facilities up to a level to generate revenue of around $50 million.
Colostrinin™ has been available in the professional channel of the healthcare market in North America and Australia for over a year. Although achieving professional awareness and endorsement was a necessary first step, retail distribution, was always and remains our objective. The first retail launch was in Cyprus in October 2008.
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