Plans to raise “not less than” £12mln actually turned into a £16mln fund-raising, as 14.55mln shares were placed at 110p a share, some 22p below last night’s closing price.
The shares placed represent around 43.4% of the existing share capital of the speciality pharmaceutical company.
Shareholders will get the opportunity to buy shares through an open offer, details of which will be dispatched soon.
The net proceeds of the placing receivable by the company will be used to invest in expanding and advancing its development pipeline, including for Q-Octreotide (MTD201) and its MTX110/MTX111 treatment for DIPG, in addition to investing in its manufacturing and commercial platform.
Any monies left over will provide additional working capital to the group.
“The funds raised today will provide Midatech with additional financial resources to accelerate the development of our diverse, oncology-focused pipeline,” said chief executive officer, Dr Jim Phillips.
“Midatech is rapidly evolving as a speciality pharma company and, together with revenues from our US commercial operations, we now have the financial flexibility to support our future growth. We would like to thank our existing and new shareholders for participating in the oversubscribed fund-raise and look forward with confidence to delivering several potential commercial and development milestones in the remainder of this year and through 2017,” Dr Phillips added.
Shares in Midatech were down 9.2p at 122.8p in afternoon trading.
Story by ProactiveInvestors