London, 20 February 2007 - Lawyers from the London office of Morrison & Foerster advised ReNeuron Group plc, a leading UK-based adult stem cell therapy business, on a £5.5 million placing to UK investors.

The transaction involves placing 18,333,333 new ordinary shares of 1p each credited as fully paid at a price of 30p per share, to raise £5.5 million before expenses.  In conjunction with the placing the Company also issued new ordinary shares to StemCells, Inc.  Collins Stewart Europe Limited acted as nominated adviser and broker to the Company in connection with the placing.

The proceeds of the placing will be used to take the Company’s lead stem cell product, ReN001, a stem cell therapy for chronic stroke disability, into U.S. clinical development (pending approval); as well as accelerating the development of the Company's other therapeutic programmes.  

The Company’s product portfolio focuses on applying its novel stem cell platform technologies in the development of ground-breaking stem cell therapies to serve significant and unmet or poorly-met clinical needs. In addition to its stroke, Parkinson’s and Huntington's disease programmes, ReNeuron is developing stem cell therapies for Type 1 diabetes and diseases of the retina.

The Morrison & Foerster team included Paul Claydon and associate James Halstead.  The firm was first instructed by ReNeuron in 2005, in relation to the company’s successful initial public offering in the UK and simultaneous private placement in the U.S.