May 2020 Midatech Pharma PLC ("Midatech" or the "Company") Midatech Pharma PLC Announces Closing of US$3.0 Million Registered Direct Offering Midatech Pharma PLC (AIM: MTPH.L; Nasdaq: MTP), an R&D biotechnology company f

PLC Announces Closing of US$3.0 Million Registered Direct Offering

PLC (AIM: MTPH.L; Nasdaq: MTP), an R&D biotechnology company focused on delivering innovative oncology and rare disease products

to patients, today announced the closing of its previously announced registered direct offering (the "Offering")

of 1,818,182 of its American Depositary Shares ("ADSs") (each ADS representing five of the Company's ordinary shares

(the "New Ordinary Shares")) at a purchase price of US$1.65 per ADS (equivalent to 0.27 per New

Ordinary Share). Additionally, in a concurrent private placement, the Company issued to the investors unregistered warrants to

purchase up to 1,818,182 ADSs ("Warrant ADSs"). The net proceeds to Midatech from the offering are expected to be approximately US$2.6

million ( 2.1 million), after deducting the placement agent's fees and other estimated offering expenses. Midatech intends

to use the proceeds from the offering to fund the clinical development program of MTX110, its product for DIPG and potentially

other pediatric brain cancers, develop an internal pipeline of Q-Sphera formulation for partnering, for working capital and for

general corporate purposes.

& Co. acted as the exclusive placement agent for the offering.

an exercise price of US$2.05 per ADS (equivalent to 0.34 per New Ordinary Share), subject to adjustment as

set forth therein, and will be immediately exercisable. The warrants will expire five years and one-half years from the issuance

above (but not the warrants or the Warrant ADSs) were offered pursuant to a shelf registration statement (File No. 333-233901)

which became effective on October 21, 2019. The offering of the ADSs was made by means of a prospectus, including a prospectus

supplement, forming part of the effective registration statement. Copies of the prospectus supplement and the accompanying prospectus

relating to the offering may be obtained from the SEC's website at http://www.sec.gov or from H.C. Wainwright & Co.,

LLC, 430 Park Avenue, 3rd Floor, New York, NY 10022, by calling (646) 975-6996 or by emailing placements@hcwco.com.

The warrants described

above 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 Warrant ADSs issuable upon their exercise, 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.

its previously announced placing ("Placing") to certain investors in the United Kingdom of 6,666,666 units ("Units"),

with each Unit comprising one ordinary share and one warrant exercisable for one ordinary share, at an issue price of 0.27

per Unit, to close on or about 22 May 2020.

been made for admission of the 15,757,576 new ordinary shares issued in the Offering, and to be issued in the Placing, for

trading on AIM, which is anticipated to occur at 8:00am on 22 May 2020 ("Admission"). The new ordinary shares

will rank pari passu with the existing ordinary shares of the Company.

of the Offering, the Company's issued ordinary share capital will consist of 32,585,891 ordinary shares. The Company

does not hold any shares in treasury. Therefore, the total number of ordinary shares with voting rights in Midatech is 32,585,891.

of 32,585,891 may be used by shareholders as the denominator for the calculations by which they will determine if they are

required to notify their interest in, or a change to their interest in the Company under the FCA's Disclosure Guidance and Transparency

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.

specified, this announcement contains certain translations of US Dollar into amounts in Pounds Sterling based on the

exchange rate of 1.00 = US$1.2199.

announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014 (MAR).

For more information, please contact:

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,

statements regarding the intended use of proceeds from the Offering and the expected closing of the Placing.

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 arising.