LONDON, April 1, 2008 /PRNewswire/ -- Plethora Solutions Holdings PLC ("Plethora", AIM: PLE), the developer of specialist products for the treatment and management of urological disorders, today announced that it has entered into a revenue interest financing agreement with Paul Capital Healthcare. Through this agreement, Plethora will receive up to $28 million in cash with $15 million payable upon signature and a further $10 million upon first commercial sale of PSD502 (PLE's development stage product for the treatment of premature ejaculation) in the USA, subject to certain conditions. In return, Paul Capital Healthcare will receive an interest in the revenues generated from Plethora's male health portfolio. In addition, under certain pre-agreed conditions, Plethora will have the option to have Paul Capital Healthcare invest an amount of $3 million by way of equity subscription in 2008. The initial payment of $15 million will provide working capital to underwrite ongoing Phase III programmes in premature ejaculation and erectile dysfunction as well as strengthening the Plethora balance sheet to facilitate potential product and corporate transactions. Additional terms of the transaction are not disclosed.
The revenue interest will be paid by Plethora primarily on revenues derived from sales of ErecAid, PSD502 and PSD510. ErecAid is marketed by Plethora's subsidiary, Timm Medical, for the treatment of erectile dysfunction; while PSD502 and PSD510 are in Phase III clinical development for the treatment of premature ejaculation and erectile dysfunction respectively. Future revenues from the remainder of the existing Plethora portfolio for the treatment of female urological disorders are not covered under this agreement.
Alongside this transaction, Plethora has amended and expanded the
existing convertible debt facility with ETV Capital S.A that the Company
put in place in July 2007. As part of this revised arrangement, ETV Capital
S.A. could potent
|SOURCE Paul Capital Healthcare|
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