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("Midatech" or the "Company")
UK Placing to Raise 5.0 million
Broker Option to raise up to a further
PLC (AIM: MTPH.L; Nasdaq: MTP), a drug delivery technology company focused on improving the bio-delivery and biodistribution of
medicines, 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.
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:
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.
Further information on the Placing
The Company and Turner Pope entered into
a placing agreement ("Placing Agreement"), pursuant to which Turner Pope agreed to use its reasonable endeavours
to procure placees pursuant to the UK Placing. Neither the UK Placing nor the Broker Option is underwritten. Turner Pope has received
binding commitments from placees to acquire the Placing Shares at the Issue Price.
The Placing Agreement contains certain
warranties and indemnities by the Company in favour of Turner Pope. It also contains provisions entitling Turner Pope to terminate
the Placing Agreement prior to Admission if, among other things, a breach of any of the warranties occurs or on the occurrence
of an event fundamentally and adversely affecting the position of the Company.
UK Placing is conditional upon, inter alia:
Company has also granted an option to Turner Pope under the Placing Agreement in order to enable them to deal with additional demand
under the UK Placing in the event that requests to participate in the UK Placing from qualifying investors are received during
the period from the time of this Announcement to 8.00 a.m. on 27 July 2020 (the "Broker Option"). To participate
in the Broker Option, qualifying investors should communicate their interest to Turner Pope via their independent financial adviser,
stockbroker or other firm authorised by the Financial Conduct Authority, as Turner Pope cannot take director orders from individual
private investors. Turner Pope should be contacted at 0203 657 0050.
Pope may choose not to accept bids and/or to accept bids, either in whole or in part, on the basis of allocations determined at
their discretion (after consultation with the Company) and may scale down any bids for this purpose on such basis as Turner Pope
shares issued pursuant to the exercise of the Broker Option ("Broker Option Shares") will be issued on the same
terms and conditions as the Placing Shares. The Broker Option may be exercised by Turner Pope, following consultation with the
Company, but there is no obligation on them to exercise the Broker Option or to seek to procure subscribers for Broker Option Shares
pursuant to the Broker Option. The maximum number of Broker Option Shares that may be issued pursuant to the exercise of the Broker
Option is 2,777,777. The maximum aggregate number of shares (including both the Placing Shares and Broker Option Shares) that may
be issued is 21,296,295 (the "New Ordinary Shares").
Broker Option Shares are not being made available to the public and none of the Broker Option Shares are being offered or sold
in any jurisdiction where it would be unlawful to do so. No Prospectus will be issued in connection with the Broker Option.
the Broker Option is exercised, settlement for the Broker Option Shares and admission of the Broker Option Shares to trading on
AIM is expected to take place on or before 8.00 a.m. on 3 August 2020.
for Admission to trading on AIM
Subject to all conditions being met, application
will be been made for the New Ordinary Shares in aggregate to be admitted to trading on AIM ("Admission"). It
is expected that settlement of the Placing Shares and, if applicable, the Broker Option Shares and Admission will take place at
8.00 a.m. on or about 3 August 2020 and that dealings in the Placing Shares and, if applicable, the Broker Option Shares will commence
When issued the New Ordinary Shares will
be fully paid and will rank pari passu in all respects with the existing Ordinary Shares.
The Company provided a corporate update
and announced the termination of the formal sale process under the City Code on Takeovers and Mergers (the "Code")
on 23 July 2020. The Company is no longer considered to be in an "offer period" as defined
in the Code. The strategic review initially announced by the Company on 31 March 2020 and updated on 20 April 2020 remains
Stephen Stamp, Midatech CEO and CFO, said: "I am delighted with the progress we have made since we switched our Q-Sphera
strategy to a balanced internal pipeline and partner collaboration model. In only a few weeks we have both formulated internal
candidates and demonstrated their in vitro dissolution; our next step is to confirm these results in vivo. We have
also signed R&D collaborations with two prestigious partners to explore the feasibility of applying our technology to their
proprietary molecules. If successful, we plan to enter into licence and technology transfer agreements with our partners. The proceeds
of the UK Placing and Broker Option will allow us to take our internal pipeline through proof-of-concept and develop the Q-Sphera
technology for unique applications with biologic active pharmaceutical ingredients."
For more information,
(UK) Limited (Nominated Adviser and Joint Broker)
Emma Earl (Corporate Finance)
Investments (TPI) Limited (Joint Broker, Sole Bookrunner)
Andrew Thacker (Corporate Broking)
Tel: +44(0)20 3657 0050
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: