Futura Medical PLC plans to raise at least £5 million through a fundraising and up to £1 million through an open offer for shares.

The fundraising comprises a placing, a subscription and a subscription offer via PrimaryBid.

Futura Medical said 71,428,572 new ordinary shares will be issued at 7 pence each. The board of the U.K.-based company reserves the right to upsize the placing.

The proposals remain subject to shareholder approval.

Net proceeds will be used to fund Futura Medical's lead product MED2002, a topical gel for erectile dysfunction, through phase 3 studies.

Nplus1 Singer Advisory LLP will conduct the accelerated bookbuild process for the placing, in addition to acting as adviser, broker and agent.

Futura Medical develops prescription and consumer products for sexual healthcare and pain relief management.