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Plethora Solutions Holdings and Paul Capital Healthcare Sign a $25M Revenue Interest Financing Agreement


4/1/2008 7:11:29 AM

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 potentially make available up to a further $3.4 million to cornerstone a future product or corporate acquisition.

Dr. Ken Macleod, Principal at Paul Capital Healthcare, said: "As with all of our transactions, 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 with financial resources to help fulfil our ambitions for the growth of Plethora. Additionally, this investment by a Paul Capital Healthcare fund is a strong vote of confidence in the commercial prospects of our male health franchise. In a climate where equity based financing would be highly dilutive to shareholders, this non-dilutive finance facility will strengthen our balance sheet and help conclude on-going licensing discussions with regard to PSD502. We also expect that this transaction will maximise value realisation from our male health portfolio, including our Timm Medical operation. Also, along with the increased commitment from ETV Capital S.A., this transaction will facilitate the execution of Plethora's product and corporate development ambitions."

flazar@lazarpartners.comsseiler@lazarpartners.com

About Paul Capital Partners and Paul Capital Healthcare

Through its multiple funds, Paul Capital Healthcare is one of the largest dedicated healthcare investors globally, with $1.8 billion in equity capital commitments and debt facilities under management. Combined, the Paul Capital Healthcare funds have invested more than $900 million in the pharmaceutical, biotechnology, and medical device sectors. These investments are focused on commercial stage companies and products, and consist of investments in the form of royalties, revenue interests, debt and equity. Additional information on Paul Capital Healthcare can be found at www.paulcapitalhealthcare.com. Paul Capital Partners manages nearly $5 billion in equity capital commitments for its three investment platforms, which include Paul Capital Healthcare, Private Equity Secondaries and Top Tier Fund-of-Funds. The firm has offices in New York, San Francisco, Paris, London and Toronto.

About Plethora:

Plethora is 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, stress urinary incontinence, interstitial cystitis, gynaecological pain, erectile dysfunction and premature ejaculation. In January 2006, Plethora acquired Minneapolis- based Timm Medical Technologies, Inc., which markets products for the treatment of erectile dysfunction (ED) to urology clinics through a US-based specialty sales team. 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.

CONTACT: Fern Lazar, of Lazar Partners, +1-212-867-1762,
flazar@lazarpartners.com, or Stephanie Seiler, +1-206-713-0124,
sseiler@lazarpartners.com, both for Paul Capital Healthcare; or Steven
Powell, of Plethora Solutions, +020-3077-5400; or Brian Hudspith, or Liz
Morley, Plethora City - Financial Enquiries, Maitland, +020-7379-5151

Web site: http://www.paulcapitalhealthcare.com/
http://www.plethorasolutions.co.uk/


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