The UK-based company last week signed an agreement with Metagenics to make the ovine and bovine colostrum-derived product available to a pool of 30,000 healthcare practioners in the US, with the option to extend rights to retail. The introduction is dependent on completion of toxicology testing, regulatory filings and due diligence on bulk manufacturing facilities in South Dakota - all of which take time and resources to complete.
In order to raise funds, ReGen today placed 111m new ordinary shares with new and existing shareholders through its brokers, at £0.01 each.
The company is looking at Colostrinin launches in other countries as well, although a spokesperson told NutraIngredients.com last week that the US represents 50 to 60 per cent of the world market.
"We wants to get this one under our belt first," he said.
ReGen executive chairman Percy Lomax said that in addition to the Colostrinin plan, some of the money raised will also be used to carry out further work on the development of its constituent peptides as pharmaceuticals, and for new formulations of its Zolpidem for the rehabilitation of people with brain injury.
The company plans to use revenues from Colostrinin to further boost its pharmaceutical development programs.
"Depending upon the actual timing of anticipated revenues from the commercialisation of ColostrininTM, the achievement of development milestones and whether other commercial opportunities present themselves, it may be necessary to raise additional amounts of capital in the future," said Lomax.
ReGen shares closed yesterday at £0.105. There are currently 583,304,442 in issue.