UK-based ReGen last year signed an agreement with Metagenics for the exclusive right to market Colostrinin through health care professionals in the US, with the option to extend to retail channels within six months.
However the agreement is still conditional, and for ReGen's part it is dependent upon satisfactory completion of toxicology tests. Executive chairman Percy Lomax confirmed that the money raised would be used "will be used for the continuing development of the Company's programmes in nutraceutical Colostrinin, zolpidem and the Colostrinin peptides for pharmaceutical use".
Shareholder approval for the new share issue was sought towards the end of 2006. It comes on the back of a further £1.1m share placement in July 2007.
Meanwhile, the company is continuing to research the neurological benefits of Colostrinin through its sponsored research agreement with the University of Texas. Yesterday it revealed that positive results of a mice study are to be presented at a conference next month.
The new study, to be presented at the 8th International Conference of Alzheimer's and Parkinson's disease in Salzburg, Austria, March 14th to 18th, was conducted on inbred mice predisposed towards premature ageing. The nutraceutical was seen to increase their lifespan and improve their neurological condition, according to lead investigator Dr Istvan Boldogh, professor at the University of Texas Medical Branch's Department of Microbiology and Immunology.
He said that locomotion, motor coordination, and learning-memory capabilities were all improved, and that the outcomes for the mice correlate well with reduced oxidative stress markets measured in organs including the brain and lover.
NutraIngredients.com has not seen the full study, which has been accepted for publication in the journal Neuropeptides. The poster presentation will be made public after the conference.
But Dr Boldogh said: "These results support the view that Colostrinin has potential utility in the management of age-related neurodegenerative diseases and improvement in the quality of life of elderly individuals. These in-vivo results are entirely consistent with in-vitro results that we have previously presented."
Percy Lomax, executive chairman of ReGen, added that the results, together with previously published studies (in particular the clinical study in individuals with Alzheimer's disease), support the launch of Colostrinin.
For its part, Metagenics must also do due diligence on Colostrinin manufacturing facilities before the agreement will be finalised.
It is envisaged that ReGen will bulk produce the nutraceutical for Metagenics, which will then carry out the final stages of production and arrange for marketing, distribution and sale of the final product.