Plethora Solutions Holdings Plc Regulatory News (PLE)

18 Nov 2009 07:23



PLETHORA SOLUTIONS HOLDINGS PLC

Placing of New Shares and Issue of Convertible Loan Note

Roll-out of The Urology Company Limited

Plethora Solutions Holdings PLC ("Plethora", AIM: PLE), a UK based specialty pharmaceutical company, announces that it has concluded an agreement to raise £1.57 million via a Placing of New Ordinary Shares and New Convertible Loan Notes. 

The Placing 

The Placing comprises New Ordinary Shares and New Convertible Loan Notes which have been placed, subject to the successful passing of certain resolutions at a General Meeting of the shareholders, with new and existing investors. £1.12m has been raised through the issue of 11,150,000 New Ordinary Shares of 1p each at a placing price of 10p per share. The New Ordinary Shares will rank pari pasu with the existing ordinary shares of the Company. Application will be made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on AIM and it is anticipated that trading will commence on Tuesday 8 December 2009. A further £450,000 has been raised by issuance of New Convertible Loan Notes due December 2012 bearing a 13% coupon and convertible at 12.5p. These loan notes may convert into 3,600,000 shares.  In addition, existing holders of two convertible loan notes, in aggregate being £1.75 million, have agreed that the terms of the existing loan notes will be brought onto the same basis as the New Convertible Loan Notes. The amendments will include extending the maturity of both existing convertible loan notes from September 2010 and January 2011 to December 2012. This improves the Company's liquidity profile by moving maturity to a later period.

The Directors have, as part of the Placing, committed to subscribe for 1.95 million new shares raising £195,000, being 12.5% of the total amount raised through the conduct of the fundraising. Details of the Directors' holdings will be published separately.

The Placing is subject to approval by shareholders at a General Meeting to be held at 9:00am on Monday 7th December. Details and Notice of the meeting are included in a circular which is being sent to shareholders today and is available on the Company's web site. 

Use of Proceeds

The net proceeds of the fundraising, estimated to be £1.5 million, will provide additional working capital to take the Group to revenue generation in the near term from product sales from its new subsidiary, The Urology Company Limited, and from high value, medium term licensing income from its clinical assets.

The Urology Company Limited

New funds will provide working capital for the roll out of a new subsidiary, The Urology Company Limited, which will market and distribute a portfolio of therapeutic products to UK urology clinics.

First sales are expected to be generated through this new venture in the first half of 2010.

Funding PSD502 and PSD503 through to revenue generation

To date two late stage clinical assets, PSD502 for the treatment of premature ejaculation and PSD503 for the treatment of stress urinary incontinence, have been licensed or acquired by pharmaceutical companies for which the Plethora Group expects to receive milestone and royalty income in the near term. 

The new working capital will enable the Company to provide support to its partners through to the point where revenues flow from the license agreements.

Dr Steven Powell, CEO of Plethora, commented: "We are delighted to now have the financial resources to complete the transition of Plethora from a cash consuming, development lead company into a sustainable urology business with revenue flowing from both near term product sales and high value, medium term licensing income. We are grateful to both existing and new investors whose financial support should enable us to steer the Company to profitability".

-Ends-

  Enquiries:

About Plethora:

Plethora is a specialty pharmaceutical company 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 (PSD506), stress urinary incontinence (PSD503), interstitial cystitis (PSD597), gynaecological pain (PSD508), erectile dysfunction (PSD510) and premature ejaculation (PSD502). Plethora's subsidiary, The Urology Company Limited, was established in 2009 to market and distribute a range of therapeutic products for the management and treatment of urology, andrology and obstetric conditions. 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