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Midatech Pharma Says UK Placing to Raise £5M; 18.5M Shares Priced @ £0.27/Share; Says Placing was Significantly Oversubscribed

Midatech Pharma PLC (Nasdaq: MTP) announces that it has raised £5.0 million (before expenses) by way of a placing to investors in the UK ("UK Placing") of 18,518,518 new ordinary shares of 0.1p each ("Placing Shares") at an issue price of £0.27

Benzinga · -
Midatech Pharma PLC (NASDAQ: MTP) announces that it has raised £5.0 million (before expenses) by way of a placing to investors in the UK ("UK Placing") of 18,518,518 new ordinary shares of 0.1p each ("Placing Shares") at an issue price of £0.27 per share ("Issue Price"). The UK Placing was significantly oversubscribed and brings new UK institutions into the Company's shareholder base.   The issue price of the Placing Shares represents a discount of approximately 32% to the closing middle market price of £0.395 per existing ordinary share on 24 July 2020, being the last Business Day before this announcement. The Placing Shares represent approximately 32% of the issued share capital of the Company as enlarged by the UK Placing.   The allotment of the Placing Shares is being made pursuant to existing authorities to allot shares and other relevant securities and to disapply pre-emption rights under section 551 of the Companies Act 2006, which the Directors were given at the Company's General Meeting held on 2 March 2020.   Turner Pope Investments (TPI) Limited ("Turner Pope") acted as sole bookrunner for the UK Placing.   Use of Proceeds The proceeds of the UK Placing, net of fees and expenses, are expected to be approximately £4.6 million ("Net Proceeds"). The Net Proceeds will be used to: ·   advance the Company's internal pipeline of Q-Sphera products through proof-of-concept and in vivo studies for potential out-licensing; ·    develop Q-Sphera technology for unique application with biologic active pharmaceutical ingredients; and ·    general corporate purposes. Taking into account available cash resources and the expected Net Proceeds, the Company expects to have sufficient cash resources to fund operations into the fourth quarter of 2021.