Plethora Solutions Holdings Plc Regulatory News (PLE)

1 Apr 2008 07:01

Plethora Solutions Holdings PLC01 April 2008 Plethora and Paul Capital Healthcare sign a $25 million revenue interest financing agreement with an option for an additional $3 million equity investment Plethora Solutions Holdings PLC ("Plethora", AIM : PLE), the developer ofspecialist products for the treatment and management of urological disorders,today announced that it has entered into a revenue interest financing agreementwith Paul Capital Healthcare. Through this agreement, Plethora will receive upto $28 million in cash with $15 million payable upon signature and a further $10million upon first commercial sale of PSD502 (PLE's development stage productfor the treatment of premature ejaculation) in the USA, subject to certainconditions. In return, Paul Capital Healthcare will receive an interest in therevenues generated from Plethora's male health portfolio. In addition, undercertain pre-agreed conditions, Plethora will have the option to have PaulCapital Healthcare invest an amount of $3 million by way of equity subscriptionin 2008. The initial payment of $15 million will provide working capital tounderwrite ongoing Phase III programmes in premature ejaculation and erectiledysfunction as well as strengthening the Plethora balance sheet to facilitatepotential product and corporate transactions. Additional terms of thetransaction are not disclosed. The revenue interest will be paid by Plethora primarily on revenues derived fromsales of ErecAid, PSD502 and PSD510. ErecAid is marketed by Plethora'ssubsidiary, Timm Medical, for the treatment of erectile dysfunction; whilePSD502 and PSD510 are in Phase III clinical development for the treatment ofpremature ejaculation and erectile dysfunction respectively. Future revenuesfrom the remainder of the existing Plethora portfolio for the treatment offemale urological disorders are not covered under this agreement. Alongside this transaction, Plethora has amended and expanded the existingconvertible debt facility with ETV Capital S.A that the Company put in place inJuly 2007. As part of this revised arrangement, ETV Capital S.A. couldpotentially make available up to a further $3.4 million to cornerstone a futureproduct or corporate acquisition. Dr. Ken Macleod, Principal at Paul Capital Healthcare, said: "As with all of ourtransactions, we conducted rigorous due diligence on both the clinical and commercial potential of Plethora's male health portfolio. We believe that the products within this portfolio are very well positioned to address the needs of men with sexual dysfunction, a condition that affects 20-30 percent of men at some point during their lifetime. Given this large market, Plethora's male health products are an attractive investment opportunity for our fund." Dr. Steven Powell, Plethora CEO, commented: "This agreement provides us withfinancial resources to help fulfil our ambitions for the growth of Plethora.Additionally, this investment by a Paul Capital Healthcare fund is a strong voteof confidence in the commercial prospects of our male health franchise. In aclimate where equity based financing would be highly dilutive to shareholders,this non-dilutive finance facility will strengthen our balance sheet and helpconclude on-going licensing discussions with regard to PSD502. We also expectthat this transaction will maximise value realisation from our male healthportfolio, including our Timm Medical operation. Also, along with the increasedcommitment from ETV Capital S.A., this transaction will facilitate the executionof Plethora's product and corporate development ambitions." -Ends- For further information contact: Plethora Solutions Tel: 020 3077 5400Steven Powell Plethora City/Financial Enquiries Tel: 020 7379 5151MaitlandBrian Hudspith/Liz Morley Paul Capital Healthcare Tel: 1 212 867 1762Lazar Partners: Email: flazar@lazarpartners.comFern Lazar Stephanie Seiler Tel: 1 206 713 0124 Email: sseiler@lazarpartners.com About Paul Capital Partners and Paul Capital HealthcareThrough its multiple funds, Paul Capital Healthcare is one of the largestdedicated healthcare investors globally, with $1.8 billion in equity capitalcommitments and debt facilities under management. Combined, the Paul CapitalHealthcare funds have invested more than $900 million in the pharmaceutical,biotechnology, and medical device sectors. These investments are focused oncommercial stage companies and products, and consist of investments in the formof royalties, revenue interests, debt and equity. Additional information on PaulCapital Healthcare can be found at www.paulcapitalhealthcare.com. Paul CapitalPartners manages nearly $5 billion in equity capital commitments for its threeinvestment platforms, which include Paul Capital Healthcare, Private EquitySecondaries and Top Tier Fund-of-Funds. The firm has offices in New York, SanFrancisco, Paris, London and Toronto. About Plethora:Plethora is focused on the development and marketing of products for thetreatment of urological disorders. The Company has products in clinicaldevelopment for the treatment of overactive bladder, stress urinaryincontinence, interstitial cystitis, gynaecological pain, erectile dysfunctionand premature ejaculation. In January 2006, Plethora acquired Minneapolis-basedTimm Medical Technologies, Inc., which markets products for the treatment oferectile dysfunction (ED) to urology clinics through a US-based specialty salesteam. The Company is headquartered in the UK and is listed on the London StockExchange (AIM:PLE) Further information is available atwww.plethorasolutions.co.uk. This information is provided by RNS The company news service from the London Stock Exchange