Renovo Group plc (LSE: RNVO) (the "Company") today announces that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR) with respect to its Juvista development and license agreement with Shire expired on 10 August 2007.
In accordance with its terms, the development and license agreement has become effective today and as previously announced Renovo will subsequently receive a US$75 million upfront payment from Shire.
In addition, under a separate subscription arrangement, Shire shall undertake a US$50 million equity investment in the Company at a price of £2.00 per share, equating to approximately 6.5% of the total outstanding shares in the Company immediately after the issue. Completion of this subscription and the subsequent admission to trading of such shares will be announced separately in due course.
Contingent on the successful development and commercialisation of Juvista the Company will be eligible for further milestone payments of up to US$700 million from Shire together with escalating royalties on sales.
For further information:
Simon Bielecki, Head of Communications +44 (0)161 606 7328