Plethora Solutions Holdings Plc Regulatory News (PLE)

28 September 2011

Plethora Solutions Holdings plc

("Plethora" or "the Company")

Proposed Financing & Reduction of Debt

Introduction

Plethora today announced that it had reached agreement with Shionogi Ireland Limited ("Shionogi") under which the Company will regain regulatory and operational control of PSD502 in Europe and other territories (the "PSD502 Agreement").

Further to this announcement, Plethora announces that it has conditionally raised approximately £2.052 million, in part to finance the activities associated with the PSD502 Agreement (the "Financing").

The Financing

The Financing comprises a placing of £1.2 million (the "Placing") through the issue of 48,085,000 new ordinary shares (the "Placing Shares") at a placing price of 2.5p per share (the "Placing Price"), and a new loan of £850,000 (the "New Loan"), to be entered into by the Company as a condition of the Placing.

In conjunction with the Placing, the Company intends to reduce its borrowings by converting £1.655 million (plus accrued interest of £518,668) of its £2.455 million outstanding convertible loan notes through the issue of 86,946,731 new ordinary shares (the "Conversion Shares") to certain convertible loan noteholders (the "Conversion").

It is anticipated that the proceeds of the Financing, being £2.05 million in aggregate before expenses, will be used by the Company to meet the expected costs associated with completing the European regulatory approval for PSD502 and for general working capital.

Plethora's Strategy

Since the Company was founded, Plethora has always been focused on urology & sexual health and, until 2009, the primary activity was to develop new lower risk pharmaceutical products. This culminated in the development of PSD502, a treatment for premature ejaculation which was licenced to Shionogi on a global basis in May 2009. In late 2009, Plethora created a new subsidiary, The Urology Company Limited, to market and distribute a portfolio of prescription pharmaceuticals, medical devices and consumer healthcare products. Since that point it has been and remains the Company's objective to create a revenue generating profitable speciality pharmaceutical company, concentrated on this sector.

PSD 502 Agreement

Shionogi and Plethora have agreed that due to Plethora's developing strength and strategic focus it is appropriate for Plethora to undertake registration and commercialisation of PSD502 in Europe and certain other territories. In return, Plethora will pay to Shionogi an undisclosed minority percentage share of the net income it receives from commercialisation.

The Company intends to pursue registration of PSD502 in Europe and has prepared plans to file a dossier as soon as possible. Plethora intends to commercialise PSD502 through further licensing to a third party. The Company intends to retain co-promotion rights for The Urology Company where it has a direct sales force.

The directors believe that the new agreement can generate significant value for shareholders as the regulatory and commercialisation process is achieved.

Recent Trading and Outlook

On 20 July 2011, the Company announced a pre-close trading update following the completion of the first half to 30 June 2011 which highlighted that the Company had continued to pursue its objectives of: (i) driving the development of its speciality sales and marketing business The Urology Company; and (ii) seeking to increase the value of its development assets, particularly PSD502.

The announcement also indicated that trading revenues from The Urology Company were broadly similar to those recorded in the second half of 2010 and that no income had been received from Shionogi in relation to PSD502.

Since the half year, trading in The Urology Company has increased, particularly after the commencement of sales in the Multi-Gyn® and Multi-Mam® products which came on stream at the beginning of September. The Directors are encouraged to note that the anticipated levels of revenue from these product ranges are in line with the Company's expectations and this validates the strategy of acquiring rights to products with existing revenue in the UK market. Given the early stage of the business, there remains a degree of variability in being able to accurately predict the year end outcome particularly with the products in their UK launch phases.

Overall the Company has continued to look at ways of reducing operating costs and expects to see further G&A savings achieved in the second half.

Preparation has commenced for the regulatory activities in relation to PSD502 and these costs will be expensed as R&D costs. Consequently, part of the proceeds of the financing will be directed towards PSD502. This will largely be undertaken through the use of external professionals and the Company does not intend to expand its R&D infrastructure.

As at 30 June 2011, the Company had cash resources available to it amounting to approximately £350,000. This level of cash resources, in conjunction with the continuing non-receipt of licensing income from Shionogi, has resulted in it being necessary to pursue the Financing described in this document to provide adequate working capital for the Company.

It is anticipated that the Company will announce its interim results on 30 September 2011.

Other information

A circular convening a general meeting of the Company to be held at 9 a.m. on 14 October 2011 (the "General Meeting") will be posted to shareholders today (the "Circular"), and once despatched this will be available from the Company's website: www.plethorasolutions.co.uk.

Application will be made to the London Stock Exchange for the Placing Shares and Conversion Shares to be admitted to trading on AIM and it is expected that Admission will be effective and trading will commence at 8:00 am on 18 October 2011. Following Admission, the Company will have 200,757,531 ordinary shares in issue. Since the Company holds no shares in Treasury, the total number of voting rights in the Company is therefore 200,757,531 and this figure may therefore be used by Shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.

Ronald Openshaw, CEO, said

"Over the last two years our shareholders have been waiting for the delivery of value in PSD502. Today's announcement is very important in securing that value and the board is committed to driving the regulatory process on an accelerated timeframe.

In July we signalled that Plethora's shareholders would need to support the Company. We are delighted that the Company has been able to garner the commitment of new and existing investors in this critical financing. The board is grateful for their support and that of our Lead Broker which has been instrumental in completing this transaction."

EXPECTED TIMETABLE OF PRINCIPAL EVENTS

Latest time and date for receipt of Forms of Proxy 9:00 am on 12 October 2011

General Meeting 9:00 am on 14 October 2011

Admission of Placing Shares

and Conversion Shares to AIM 8:00 am on 18 October 2011

PLACING STATISTICS

Existing Ordinary Shares 65,725,800

Placing Shares issued 48,085,000

Conversion shares issued 86,946,731

Enlarged Share Capital 200,757,531

Percentage of the Enlarged Share Capital

represented by the Placing Shares 23.95%

Percentage of the Enlarged Share Capital

represented by the Conversion Shares 43.31%

Placing Price 2.5p

Gross proceeds of the Placing £2,052,125

-Ends-

Enquiries:

About Plethora:

Plethora is focused on the development and marketing of products for the treatment of urological disorders. The Company isfocussed on: (i) driving the development of its speciality sales and marketing business, The Urology Company; and (ii) seeking to increase the value of its development assetsthe most advanced of which is PSD502 for the treatment of premature ejaculation.

Plethora's subsidiary, The Urology Company Limited, established in 2009, markets and distributes a range of branded and generic pharmaceutical products, pharmaceutical specials, medical devices and nutritional supplements for the treatment of urology, andrology and obstetric conditions. Its products fall into to categories (i) Professional - where a physician, nurse or other healthcare professional makes a prescribing decision and include Striant® SR, Urolieve®, Hyalofemme® and Dianatal®; and (ii) Consumer - where the consumer/patient makes a buying decision and include Hyalofemme®, Multi-Gyn®, Multi-Mam® and hI-Cran®.

The Company is headquartered in the UK and is listed on the London Stock Exchange (AIM: PLE.L). Further information is available at www.plethorasolutions.co.uk and www.theurologyco.com