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January 2023 Midatech Pharma PLC ("Midatech" or the "Company") Result of General Meeting Appointment of Specialist Business Advisory Firm - Quantuma Midatech Pharma PLC (AIM: MTPH.L; Nasdaq: MTP), a drug delivery technol

Key Takeaway: Midatech Pharma PLC held a General Meeting where shareholders passed only one of the ordinary resolutions, leading to the halt of a proposed acquisition and name change. The company is currently facing financial difficulties and requires alternative funding by mid-March 2023 to continue operations. To navigate these challenges, Midatech has appointed Quantuma Advisory Limited for contingency planning. The lack of passed resolutions significantly impacts the company's strategic direction and financial outlook, with a risk of administration looming if funding is not secured.

Market Sentiment Analysis

POSITIVE FACTORS

  • The company has sufficient cash resources to fund operations until mid-March 2023.
  • The appointment of Quantuma Advisory Limited suggests proactive management in addressing financial challenges.

CONCERNS & RISKS

  • All proposed resolutions except one were not passed, hindering strategic initiatives.
  • The company urgently requires alternative funding to continue as a going concern, raising concerns about financial stability.
  • Failure to secure funding may lead to the company entering administration.

Full Press Release Details

("Midatech" or the "Company")
Result of General Meeting
Appointment of Specialist Business Advisory
Midatech Pharma PLC (AIM: MTPH.L; Nasdaq:
MTP), a drug delivery technology company focused on improving the bio-delivery and biodistribution of medicines, announces that at its
General Meeting held at 10.00 a.m. today all ordinary resolutions were carried, but all other resolutions were not passed by shareholders,
as set out in the table below. As certain resolutions were inter-conditional, only Resolution 4 (general authority to allot securities)
was therefore passed. Accordingly, the proposed acquisition of Bioasis Technologies, Inc. and the
proposed transactions related thereto, including the Change of Name, will not proceed.
While the Company has sufficient cash
resources to fund its operations until mid-March 2023 and the Board will seek to preserve its cash resources as far as practicable, it
urgently requires a commitment for alternative sources of funding in advance of mid-March 2023 to be able to continue as a going concern
and the Board are exploring options. There can be no guarantee that the Company will be able to find alternative sources of funding on
a timely basis. If alternative funding is not available, the Directors believe that it is likely that the Company could be forced to enter
into administration.
The Board wishes to ensure that it
is acting in the best interests of creditors and other stakeholders. Therefore, in light of today's vote at the General Meeting
and its financial position, the Company has appointed Quantuma Advisory Limited, a specialist business advisory firm, to undertake contingency
planning and provide advice to the Board of Directors on appropriate actions.
Further announcement(s) will be made
as and when appropriate.
Capitalised terms shall
have the same meanings as those set out in the Company's circular dated 5 January 2023.
The votes received in
respect of the Resolutions were as follows:
Resolution For Against
1 That the directors be authorised to allot the Transaction Shares 24,144,874 62.53% 14,470,936 37.47%
2 That the directors be authorised to allot shares in connection with the issue of the New Options, the New Warrants and the Bioasis Warrants 24,089,977 62.37% 14,532,883 37.63%
3 That the directors be authorised to allot the Cresence Shares 24,088,252 62.37% 14,534,708 37.63%
4 That the directors be generally authorised to allot shares 24,130,299 62.48% 14,490,436 37.52%
5 That the directors be authorised to disapply the statutory pre-emption provisions in connection with the authorisation to allot shares 24,132,442 62.64% 14,393,018 37.36%
6 That the directors be authorised to disapply the statutory pre-emption provisions in connection with the authorisation to allot shares 24,076,820 62.49% 14,451,140 37.51%
7 That the directors be authorised to disapply the statutory pre-emption provisions in connection with the authorisation to allot shares 24,079,017 62.50% 14,446,718 37.50%
8 That the directors be authorised to disapply the statutory pre-emption provisions in connection with the authorisation to allot shares 24,075,567 62.50% 14,447,393 37.50%
9 That Midatech Pharma Plc changes its name to Biodexa Pharmaceuticals PLC 24,711,795 64.03% 13,883,040 35.97%
The total number of votes
cast represented approximately 35.6% of the Company's total issued share capital.
contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014, as it forms part of UK domestic
law by virtue of the European Union (Withdrawal) Act 2018, as amended.
For more information, please contact:
Stephen Stamp, CEO, CFO
Tel: +44 (0)29 20480
Strand Hanson Limited
James Dance / Matthew
Chandler / Rob Patrick
Tel: +44 (0)20 7409 3494
Turner Pope Investments
(TPI) Ltd (Joint Broker)
Andrew Thacker / James Pope
Tel: +44 (0)20 3657 0050
IFC Advisory Limited
(Financial PR and UK Investor Relations)
Tim Metcalfe / Graham
Tel: +44 (0)20 3934 6630
Edison Group (US Investor Relations)
Tel: +1 (860) 573 9637
About Midatech Pharma
Midatech Pharma PLC (dual listed on LSE AIM: MTPH;
and NASDAQ: MTP) is a drug delivery technology company focused on improving the bio-delivery and bio-distribution of medicines. The
Company combines approved and development medications with its proprietary and innovative drug delivery technologies, to provide compelling
products that have the potential to powerfully impact the lives of patients.
The Company has developed three in-house technology
platforms, each with its own unique mechanism to improve delivery of medications to sites of disease. All of the Company's technologies
have successfully entered human use in the clinic, providing important validation of the potential for each platform:
The platform nature of the technologies offers
the potential to develop multiple drug assets rather than being reliant on a limited number of programmes. Midatech's technologies
are supported by 36 patent families including 120 granted patents and an additional 70 patent applications. Midatech's headquarters and
R&D facility is in Cardiff, UK. For more information please visit www.midatechpharma.com
Forward-Looking Statements
Certain statements in
this announcement may constitute "forward-looking statements" within the meaning of legislation in the United Kingdom and/or
the United States Private Securities Litigation Reform Act. All statements contained in this announcement that do not relate to matters
of historical fact should be considered forward-looking statements.
In certain cases, forward-looking
statements can be identified by the use of words such as "plans", "expects" or "does not anticipate", or
"believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements
and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Midatech to
control or predict, that may cause their actual results, performance or achievements to be materially different from those expressed or
implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein.
Reference should be made
to those documents that Midatech shall file from time to time or announcements that may be made by Midatech in accordance with the London
Stock Exchange's AIM Rules for Companies ("AIM Rules"), the Disclosure and Transparency Rules ("DTRs") and the rules
and regulations promulgated by the US Securities and Exchange Commission, which contains and identifies other important factors that could
cause actual results to differ materially from those contained in any projections or forward-looking statements. These forward-looking
statements speak only as of the date of this announcement. All subsequent written and oral forward-looking statements by or concerning
Midatech are expressly qualified in their entirety by the cautionary statements above. Except as may be required under the AIM Rules or
the DTRs or by relevant law in the United Kingdom or the United States, Midatech does not undertake any obligation to publicly
update or revise any forward-looking statements because of new information, future events or otherwise arising.

Frequently Asked Questions

What was the outcome of Midatech's General Meeting?

All ordinary resolutions were approved, but other resolutions failed.

What resolutions were successfully approved at the meeting?

Only Resolution 4, authorizing the allotment of securities, was approved.

What funding issues is Midatech facing?

Midatech requires alternative funding before mid-March 2023 to continue operations.

Who has been appointed to assist Midatech's Board?

Quantuma Advisory Limited has been appointed for contingency planning.

How many votes were cast in the General Meeting?

Approximately 35.6% of the Company's total issued share capital voted.

Last updated: Jan 23, 2023