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Shares of Futura Medical plc. (LON: FUM) surged 45.2% after announcing that it had entered into a financing agreement to receive £2 million from HT Riverwood Multi-Growth Fund.
The pharmaceutical company also announced that it had signed a licensing agreement with Pride Century Ventures to develop and commercialise its MED3000 topical, gel-based Erectile Dysfunction (ED) treatment.
Pride Century Ventures is a special purpose vehicle owned by Co-High Investment Management Limited (Co-High). The deal requires Co-High to provide funding of up to £4 million to Futura for the development and regulatory approval process of MED3000 in China and South East Asia.
Futura Medical is entitled to a 50% share of the region’s profits once the drug is commercialised. Investors cheered both announcements, which left Futura in a robust financial position and with the potential for greater profits in future.
The financing deal saw Futura issue 3-year convertible loan notes worth £1.5 million to Riverwood, which can convert the notes into actual shares at £0.20 per share, a 25% premium to the company’s closing share price yesterday.
James Barder, Futura Medical’s CEO, commented: “We are excited to be entering into this collaboration with Co-High to expand MED3000's market reach to China and South East Asia, a significant market for ED. We are very pleased to have a partner with Co-High's experience, resource and strong pharmaceutical connections in the Region and look forward to working in close collaboration with their team.”
“We remain confident that we will achieve EU and US approval for MED3000 as a clinically proven, fast-acting, topical and highly tolerable treatment for ED patients, without the need for a doctor's prescription and look forward to updating the market in the coming months.”
Futura Medical share price.
Futura Medical shares surged 45.21% higher to trade at 23.96p, having rallied from Wednesday’s closing price of 16.5p.
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