(Alliance News) - Midatech Pharma PLC on Monday said it successfully raised GBP5.0 million from a UK placing and raised another GBP750,000 through a broker option.
The drug delivery technology company, headquartered in Cardiff, raised the GBP5.0 million through a "significantly oversubscribed" placing of 18.5 million shares at a 27 pence per share issue price. The 27p issue price was an approximately 32% discount to its Friday closing price of 39.5p.
Shares in Midatech were down 7.6% at 36.50p in London in Monday morning.
Turner Pope Investments was Midatech's sole bookrunner for the placing, proceeds of which will be used to advance its internal Q-Sphera products pipeline and technology, as well as for general corporate purposes.
With its existing cash resources, and the expected net proceeds of around GBB4.6 million, Midatech expects it will have enough cash resources to fund operations through into the fourth quarter of 2021.
Midatech separately said it has raised GBP750,000 from a broker option following completion of its placing. The company granted Turner Pope an option allowing it to deal with additional demand from qualifying investors of up to a GBP750,000 maximum.
Turner Pope exercised the broker option to this maximum amount and this the total number of Midatech shares to be issues under the placing and broker option is 21.3 million.
Chief Executive & Chief FInancial Officer Stephen Stamp said: "I am delighted with the result of the UK placing and welcome on board our new shareholders. The oversubscription of the UK placing followed by full take-up of the broker option is a massive vote of confidence in our new strategy and the progress we have made since we started our strategic review in April."
By Anna Farley; annafarley@alliancenews.com
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