ProStrakan agrees new financing arrangement with Paladin Labs

ProStrakan has entered into a new financing arrangement and strategic partnership with Paladin Labs.

Under the terms of the new agreement, Canada-based Paladin is to pay 50 million pounds to acquire ProStrakan's existing secured debt facility, with the addition of certain conversion rights.

This entitles Paladin to appoint one non-executive director to ProStrakan's board, with the company announcing the selection of Jonathan Ross Goodman to this position, effective as of the completion of the current proposals.

In addition, the transaction will grant Paladin rights to sell ProStrakan products in territories in which no existing distribution deals are in place.

Peter Allen, chairman and acting chief executive of ProStrakan, said: "ProStrakan and Paladin already have a track record of working well together and I welcome the opportunity to do so more closely as we enter this exciting period in the development of ProStrakan."

This comes after the firm revealed in its interim management statement last month that it has seen a 20 percent year-on-year revenue growth so far in 2010.