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.
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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.”
Adding:
“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.