Full Press Release Details
("Midatech" or the "Company")
Termination of "Formal Sale Process"
Midatech (AIM: MTPH.L; Nasdaq: MTP), a
drug delivery technology company focused on improving the bio-delivery and bio-distribution of medicines, announces it has
terminated the formal sale process initiated by the Company on 20 April 2020. The formal sale process,
as referred to in the City Code on Takeovers and Mergers (the "Code"), granted dispensations
from Rule 2 of the Code such that any interested parties participating in the formal sale process were not required to be publicly
The wider strategic review announced by
the Company on 31 March 2020 continues and the Company is considering all
potential options for extracting value from its technologies and providing working capital for the Company. As part of the
ongoing strategic review process, the Company is evaluating early stage proposals and expressions of interest from third parties
including, inter alia, for the potential acquisition of certain assets of the Company and/or a
transaction which if progressed would constitute a reverse takeover under the AIM Rules. There is no guarantee that these
discussions will result in a transaction on terms that are acceptable to shareholders, or at all. In the last three months, working
with Noble Capital Markets Inc., the Company has not received any proposals from third parties for the potential acquisition of
the Company under the Code and, accordingly, it is now terminating the formal sale process.
As announced by the Company on 9 June 2020,
the Company received a letter from Secura Bio Inc. purporting to terminate the Company's licence to panobinostat, the active
ingredient in MTX110. The Company remains of the view that the grounds for the purported termination of the MTX110 licence agreement
by Secura Bio Inc. are unfounded. At this time, the Company is considering various avenues for a resolution and/or best options
available to the Company.
As previously announced, activities connected
with MTD201 have been wound down expeditiously and the Company's MTD201 manufacturing facilities in Bilbao have been closed.
Following the termination of in-house development of MTD201, the Company's previously announced strategy to exploit its Q-Sphera
technology more broadly is gaining traction. On 8 June 2020, the Company announced a collaboration with Dr Reddy's Laboratories
Ltd and on 21 July 2020 the Company announced a second collaboration with a European affiliate of
a global pharmaceutical company, in each case to explore the feasibility of applying Midatech's Q-Sphera technology
to the partners' proprietary products. Currently the revenues associated with these collaborations are not material to the
financial position of the Company, but the Board believe the collaborations are encouraging early validation of the technology
platform and, if successful, the Company would expect to enter into licensing and technology transfer agreements with its partners
including milestone payments and royalties.
Following this announcement,
the Company is no longer considered to be in an "offer period" as defined in the Code.
announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014 (MAR).
(UK) Limited (Nominated Adviser and Broker)
Emma Earl (Corporate Finance)
Investments (TPI) Limited (Joint Broker)
Limited (Financial PR and UK Investor Relations)
Edison Group (US Investor Relations)
Megan Paul / Laine Yonker
Tel: (646) 653-7030/ 7035
Midatech Pharma PLC (dual listed on LSE
AIM: MTPH; and NASDAQ: MTP) is an R&D company focused on Making Medicines Better' by improving delivery of drugs
in the body. The Company combines existing medications with its proprietary and innovative drug delivery technologies to provide
compelling oncology and rare disease products that have the potential to powerfully impact the lives of patients undergoing treatment
for life threatening diseases.
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:
By improving biodelivery and biodistribution
of approved existing molecules, Midatech's unique R&D has the potential to make medicines better, lower technical risks,
accelerate regulatory approval and route to market, and provide newly patentable products. The platform nature of the technologies
allows the potential to develop multiple drug assets rather than being reliant on a limited number of programmes.
Midatech's headquarters and R&D facility
is in Cardiff, UK. For more information please visit www.midatechpharma.com
in this press release may constitute "forward-looking statements" within the meaning of legislation in the United Kingdom
and/or United States Private Securities Litigation Reform Act. All statements contained in this press release that do not relate
to matters of historical fact should be considered forward-looking statements, including, but not limited to, , any payments that
may be received, the success of the research collaboration in developing novel products, the strategic review and formal sale process.
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 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