Midatech Pharma PLC (LON:MTPH; Nasdaq: MTP), a drug delivery technology company focused on improving the bio-delivery and bio-distribution of medicines, has announced the closing of the Private Placement of 10,344,822 Units initially at an issue price of US$0.58 per Unit (further details of which were set out in the announcement of 9 February 2023).
Each such Unit comprises either (i) one American Depository Share, one A Warrant and one and one-half B Warrants, or (ii) one Pre-Funded Warrant, one A Warrant and one and one-half B Warrants. The Company will therefore issue, in aggregate, 2,600,160 new ADSs (representing 65,004,000 new ordinary shares of 0.1p each and 7,744,662 Pre-Funded Warrants (subject to adjustment as set out in the Company’s announcement of 9 February 2023) under the Private Placement.
The 65,004,000 Placing Shares issued in respect of the Private Placement were admitted to trading on AIM at 8.00 a.m. today. The Placing Shares rank pari passu with the pre-existing Ordinary Shares.
The net proceeds to the Company raised via the Private Placement are expected to be approximately US$5.2 million (approximately £4.3 million), after deducting the placement agent’s fees and other estimated expenses. Midatech intends to use such net proceeds primarily to continue funding of the clinical development program of MTX110, its product for recurrent glioblastoma and DIPG, and for working capital and general corporate purposes.
Ladenburg Thalmann & Co. Inc. acted as the exclusive placement agent for the Private Placement.
In addition, subject to shareholder approval being obtained at the planned forthcoming general meeting, the Company intends to grant, in aggregate, 10,344,822 A Warrants and 15,517,236 B Warrants to the investors in the Private Placement. The A Warrants and B Warrants, if issued, will afford the holder the right to subscribe for one ADS for nil consideration, will be immediately exercisable and expire in five years and three years, respectively.
A circular convening the general meeting is expected to be sent to shareholders shortly.
Change of Broker
Midatech announces the appointment of Strand Hanson Limited (“Strand Hanson”) as the Company’s sole broker with immediate effect. Strand Hanson remains the Company’s Nominated Adviser.
Additional Information
The securities offered under the Private Placement were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”), and Regulation D promulgated thereunder and, along with the Warrants, have not been registered under the Act, and may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from such registration requirements and applicable state securities laws.
This announcement shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Unless otherwise specified, this announcement contains certain translations of US dollar into amounts in Pounds Sterling based on the exchange rate of £1.00 = US$1.2174.
Capitalised terms shall have the same meanings as those set out in the Company’s announcement of 9 February 2023.
