10th February 2023
Midatech Pharma Raises £5M in Private Placement
Midatech Pharma, a Cardiff-based drug delivery technology company which last month warned of an urgent need for alternative sources of funding, has entered into binding agreements with institutional US investors to raise $6m (£5m) in a private placement.
The business, which is dual listed on the AIM and NASDAQ stock exchanges, is focused on improving the bio-delivery and bio-distribution of medicines.
In January, Midatech had warned it only had sufficient cash resources to fund its operations until mid-March 2023 and if new funding was not available it could be forced to enter into administration.
The net proceeds of the private placement will enable Midatech to focus on developing its clinical asset, MTX110, and, alongside cost-cutting initiatives, are expected to provide the company with sufficient working capital to December 2023.
The private placement is being implemented by way of a non-pre-emptive cashbox structure, utilising the company’s existing general share capital authority granted at the general meeting held on 23 January 2023 which is expected to close, subject to the satisfaction of customary closing conditions and admission (as defined below), on or around 15 February 2023.
Shareholder approval is being sought for the issue and allotment of certain associated securities in respect of the private placement not covered by the existing shareholder authority.
Ladenburg has acted as placement agent in relation to the private placement.
Midatech’s headquarters and R&D facility is in Cardiff.