22 Jan 2009 07:00
| 22 January 2009 |
PLETHORA SOLUTIONS HOLDINGS PLC ("Plethora" or "the Company")
Financing Update
Plethora Solutions Holdings PLC ("Plethora", AIM : PLE), the specialist developer of products for the treatment and management of urological disorders, today announces that it has raised £1 million by way of Convertible Loan Notes and associated Warrants, details of which are set out below. In addition, the Company is involved in early stage discussions with its partner, Sciele Pharma Inc. in relation to a potential bridge financing of up to £1.5 million which would support the ongoing development of PSD502.
The Convertible Loan Notes are conditional upon certain resolutions being passed by Shareholders in a General Meeting to be held on 16 February 2009. Notice of the General Meeting was sent to shareholders today and is available on the Company's website.
The Company will utilise the funds raised to provide additional working capital to assist in Plethora's continued development, specifically in completion of recruitment for the Phase III trial for PSD502 in the USA and to strengthen the balance sheet, so that the Company can complete either a license agreement for PSD502 with a partner for territories outside of the USA or an outright sale of the PSD502 asset.
The Convertible Loan Notes and associated Warrants
The terms of the Convertible Loan Notes are as follows:
The Loan Stock is unsecured and carries a coupon of 4 per cent. p.a. to be paid upon conversion or repayment.
The Loan Stock is convertible at any time at the holder's option for a period of two years. The Loan Stock is convertible into new Ordinary Shares at a conversion price of 25 pence per Loan Stock Unit, a 21 per cent. discount to the closing middle market price of 31.5 pence on 21 January 2009, the latest practicable date prior to the posting of the circular containing the notice of General Meeting.
The Loan Stock is subordinate to and shall rank behind obligations owed to ETV Capital S.A, Paul Capital Healthcare, Merlin BioSciences Fund III LP and Merlin Biosciences Fund III 2007 LP (either collectively or individually) and Sciele Pharma, Inc.
Application will not be made for the either the Loan Stock or Warrants to be admitted to trading on AIM.
With effect from conversion of the Loan Stock, the Noteholders will be issued with 1,333,332 Warrants exercisable at a price of 33 pence per Ordinary Share for a period of two years from issue.
Enquiries:
| Plethora Solutions Steven Powell | Tel : +44(0) 20 3077 5400 |
| FinnCap Geoff Nash | Tel: +44(0) 20 7600 1658 |
| Hansard Group Adam Reynolds/John Bick | Tel: +44(0) 20 7245 1100 |
About Plethora:
Plethora is focused on the development and marketing of products for the treatment of urological disorders. The Company has products in clinical development for the treatment of overactive bladder, stress urinary incontinence, interstitial cystitis, gynaecological pain, erectile dysfunction and premature ejaculation. Plethora has a US subsidiary, Timm Medical Technologies Inc., which markets products for the treatment of erectile dysfunction (ED) to urology clinics through a US national sales operation. The Company is headquartered in the UK and is listed on the London Stock Exchange (AIM:PLE)
Further information is available at www.plethorasolutions.co.uk