Plethora Solutions (LON:PLE) is to raise £4.4mln to advance its treatment for premature ejaculation.
The company is issuing 49mln shares that will be purchased at 9p a pop, primarily by institutional investors, including funds associated with Jim Mellon, Plethora’s non-executive chairman.
Shares in Plethora closed at 11.13p the day before the share issue was announced.
"The proceeds of this financing will be used to complete the last steps of regulatory approval in the Europe, but importantly will fund the filing and prosecution of a New Drug Application (NDA) with the US Food and Drug Administration (FDA),” the company said in a statement.
It will also provide working capital to continue the group's partnering activities for the commercial launch of PSD502, it said.
The company disclosed that 22.33mln shares will be available through subscription, raising £2.0mln; of this, £1.8mln will come from entities associated with Jim Mellon. A further £100,000 will be subscribed to by other directors, including chief executive Ronald Openshaw, chief scientific officer Professor Michael Wyllie and non-executive director Dr Greg Bailey.
Institutional investors will sign up for 26.7mln shares to raise £2.4mln.
"Over the last few months Plethora has delivered the agreement to control global development and commercialisation of PSD502 and the positive opinion from the CHMP. Based on the positive effect on the company's valuation we have secured the resources to execute our near term strategy of seeing approval of PSD502 and generating a financial return to shareholders," Openshaw said.