(Alliance News) - Midatech Pharma PLC on Wednesday said it has signed a definitive binding agreement with an investor for a USD3.0 million registered direct offering.
The undisclosed "institutional investor" will pay USD1.00 each for 3.0 million American depository shares in Midatech. Each ADS represents 20 ordinary Midatech shares, meaning the offer is equivalent to 3.9 pence per ordinary share for 60.0 million ordinary shares overall.
Shares in drug delivery research and developer Midatech were down 11% at 5.00p in London on Wednesday morning.
Alongside this, Midatech will issue unregistered warrants to purchase up to another 3.0 million ADSs, with each warrant having a USD1.25 per ADS exercise price - equivalent to 4.8p per ordinary share. These warrants expire five and a half years after being issued.
The offering closes on or around Friday this week, with HC Wainright & Co acting as exclusive placement agent.
By Anna Farley; annafarley@alliancenews.com
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