This milestone aligned with the timelines set out in the non-binding Memorandum of Understanding (MOU) signed between the two companies (2 March), which granted Kyocera exclusive negotiation rights for a commercial licence for Progenza OA in Japan.
Pursuant to the terms of the MOU, this milestone triggers a further payment of JPY100M when a definitive commercial licence is executed, in addition to any payments that are included in the commercial arrangement.
While outside the quarter, Regeneus recently announced Kyocera will continue to have a short extension to the exclusive rights to negotiate the licence until 31 August 2020.
The Company's cash balance as at 30 June 2020 was $982k. Net operating cash outflow for the quarter was $376k, including R&D activities, corporate costs and expenditure related to negotiations with Kyocera.
Regeneus continued its cost-containment activities over the June quarter. It is anticipated that the cash balance at the end of the quarter and the undrawn facilities of $2.9 million will provide sufficient cash to fund operations until negotiations with Kyocera are complete.
Regeneus CEO and Executive Director Leo Lee said the Company continues to align its activities with the revised strategic direction to address global pain market and deliver long-term shareholder value.
"The June quarter was another period of progress for Regeneus and we are pleased to have recently provided positive progress on our negotiations with Kyocera. We look forward to updating the market on this front," said Mr Lee.
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About Regeneus Ltd
Regeneus Ltd (ASX:RGS) is a Sydney-based clinical-stage regenerative medicine company using stem cell technologies to develop a portfolio of novel cell-based therapies to address significant unmet medical needs in the human health markets with a focus on osteoarthritis and other musculoskeletal disorders, neuropathic pain and dermatology.