Plethora Solutions has secured 2.1m pounds in funding after its subsidiary The Urology Co. fell into administration.
The funds were raised through the placing of 106.2m new ordinary shares at a price of 2.0p per share, representing an 8.0% interest.
It comes after the company announced it was in urgent need of financing as it appointed administrators to The Urology Co. last month.
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Plethora said the funds raised will be used to provide working capital and complete regulatory approval of its PSD202 treatment for premature ejaculation. A dossier has been submitted to the European Medicines Agency for clearance and a decision is expected later this year.
Jim Mellon, a Director of the company, has invested £1.32m while the remaining £804,00 was received from institutional investors.
"Following the strategic review in February the company's full resources are focussed on PSD502 and our cost base has already been restructured accordingly," said Chief Executive Officer, Ronald Openshaw.
"We are grateful to all our existing investors and lenders who again have supported the company. Their support underpins our belief in the value of PSD502, which we hope will be approved in Europe by the end of 2013."
Shares rose 1.35% to 1.88p at 14:48 Monday.
RD
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