Redundancies are planned at a stem cell technology company as it fights for life.
ReNeuron Group plc, based in Pencoed, South Wales, floated in 2005 and is listed on London’s junior AIM market.
The company entered administration in March. CFO John Hawkins yesterday left the firm to “pursue other opportunities”.
The joint administrators, alongside the board of the company, have been assessing a number of possible options, including the possible recapitalisation of the business by way of an equity fundraise, as well as the potential sale of the operating subsidiary of the group or its assets on a piecemeal basis.
“The board has prepared a revised business plan which would enable the group to continue to progress the development of its exosome platform on a lower cost base should it be able to secure an equity fundraise,” it stated today.
“As part of this, and in order to preserve value for creditors, the joint administrators are undertaking a cost rationalisation which has included, inter alia, the redundancy of several of the group’s employees as well as other cost-cutting measures.”
Certain members of the management team, including executive chairman Iain Ross and chief scientific officer Randolph Corteling, have remained with the business.