ReNeuron : Interim Statement 2021

Inside our report

Strategic Report

Welcome to our Interim Results for the six months ended

30 September 2021

ReNeuron is a UK-based Proprietary Stem Cell and Exosome Technologies company.

Operational highlights

hRPC stem cell therapy candidate

for retinal disease:

• In June, enrolment into the higher dose Phase 2a extension study was temporarily suspended due to a presumed case of bacterial interocular infection
• Following a completed investigation, and with Data and Safety Monitoring Board approval, by October the study was reopened in all geographies
• First subject, post lifting of the suspension, was treated in mid-October with early data from the extension study expected in late Q1 2022

Exosome platform:

• Seven collaborations now proceeding with global pharma, biotech and academic institutions, with more expected in the coming 12 months
• Pre-clinicaldata indicates that ReNeuron's Exosome drug delivery technology can effectively deliver therapeutic proteins to the brain to potentially treat neurological diseases

Introduction

Other operational updates:

• Collaboration signed with University College London (UCL) investigating the use of ReNeuron's induced pluripotent stem cell (iPSC) platform to potentially generate CAR-T and/or CAR-NK cells
• Positive data from a separate UCL collaboration demonstrating that ReNeuron's iPSCs can be differentiated into Schwann cells with potential applications such as peripheral nerve damage repair

Corporate and

Organisational Development:

• In July Iain Ross was appointed as Non-Executive Chairman with Dr Tim Corn stepping down but continuing to serve as Non-Executive Director. Additionally Barbara Staehelin joined the board as Senior Independent Non- Executive Director
• In May Dr Stefano Pluchino joined the executive team as Chief Scientific Officer
• Post period end in October 2021, Catherine Isted, ACMA, joined the Board, replacing Michael Hunt as Chief Financial Officer
• In October 2021, following nearly 9 years of service to the board, Professor Sir Chris Evans OBE stood down as a Non-Executive Director, remaining as an adviser to the Board

Find out more at

www.reneuron.com

Financial highlights

• Revenue for the period of £58,000 relating to royalty income (H1 2020: £41,000)
• Loss for the period of £5.2 million (H1 2020: loss of £7.1 million) driven by lower costs
• Reduced costs incurred in the period of £6.1 million (H1 2020: £7.9 million) primarily driven by lower R&D spend following cessation of the Company's stroke disability programme

• Increased net cash used in operating activities of £4.6 million (H1 2020: £2.6 million) with H1 2020 benefitting from a £2.9m R&D tax credit receipt
• Cash, cash equivalents and bank deposits at
  30 September 2021 of £17.4 million (31 March 2021: £22.2 million) providing at least a 12-month runway

Overview

ReNeuron has seen encouraging results from all aspects of its operations with strong progress in its seven Exosome collaborations and the resumption of its retinitis pigmentosa extension study. The exosomes platform has generated significant pre-clinical data in delivery

of functional proteins to the brain while the retinitis pigmentosa extension study is expected to produce initial data by late Q1 2022.

In the period ReNeuron welcomed Iain Ross as the Company's new Chairman and also Barbara Staehelin joined the board as the Senior Independent Non- Executive Director. Additionally, in October, Catherine Isted joined ReNeuron as Chief Financial Officer. Financially ReNeuron ended the period with cash of £17.4 million, providing a cash runway of in excess of

12 months and the Company looks forward to the year ahead maximising and building on the foundations of the year to date.

Iain Ross

Chairman's statement

Having been appointed as the new Chairman in

July 2021, I am absolutely committed to working with an effective Board and management team to accelerate the development of this business and to create realisable value for all shareholders. I have been impressed by the quality of the science, the breadth of the Company's proprietary stem cell based technology platforms and the skills and competencies of our scientific team.

Our priority now is to focus on the immediate key growth drivers, including securing long-term industrial partnerships and investing in those assets with inherent and potential realisable value.

Retinitis pigmentosa has a devastating impact on patients' lives and we have been encouraged by the early stage Phase 2a clinical data generated to date. We recognise that the clinical data generated over the next few months will determine the most appropriate strategy to take this programme forward. In addition, our differentiated exosome technology platform presents us with a unique opportunity to compete in an exciting

and fast developing sector and as a result we intend to build on the momentum already generated through the partnerships we have established and those we intend to target over the coming months.

Despite the breadth of our stem cell based platforms, if we are to succeed, we need to be prepared to make tough decisions and only progress and invest in those programmes whereby true value can be created.

Accordingly, where necessary we will look to share the value creating potential of our assets to secure substantive third-party collaborations, thereby increasing significantly the probability of success in terms of product development and value creation. The Board and management team will continue to assess all opportunities to create value through organic growth but also, as appropriate, explore technology licensing and acquisition opportunities to accelerate and enhance the overall value proposition of our Company.

I look forward to continuing to work with the ReNeuron team and all our stakeholders.

Iain Ross

Non-Executive Chairman

30 November 2021