ReNeuron has raised £33.2 million as part of a package that will see the UK stem cell company relocate from Guilford to Wales.

The fundraising consists of £25.4 million from a placing of 1.01 billion shares at 2.5 pence to new investors that include Abingworth, Invesco and the Wales Life Sciences Investment Fund. Existing investors also are participating in the offering which is priced at a 17.4% discount to ReNeuron's closing price on 3.03 pence.

ReNeuron also will get £7.8 million from the Welsh government to establish a cell manufacturing and development facility in South Wales for late-stage clinical and commercial product requirements. It will move to the facility over the next two years,though the precise location has yet to be disclosed.

The cash will be used to advance the company's lead product ReN001, for the treatment of patients left disabled by the effects of a stroke. The therapy is expected to go into Phase II this year.

The company also announced that the well-known life sciences entrepreneur Sir Chris Evans has been appointed as a non-executive director. He is chairman of Arthurian Life Sciences, which manages the £100 million Wales Life Sciences Investment Fund.