Midatech raises $2.6m through offering and private placing

Biotechnology company Midatech Pharma announced the closing of its registered direct offering of 1,818,182 American depositary shares (ADS), each representing five of its ordinary shares, at a price of $1.65 per ADS on Thursday.

The AIM-traded firm also said that in a concurrent private placement, it issued unregistered warrants to investors to purchase up to 1,818,182 ADSs.

It said the net proceeds from the offering were expected to be around $2.6m (£2.1m), after deducting the placement agent's fees and other estimated offering expenses.

Midatech said it intended to use the proceeds to fund the clinical development programme for ‘MTX110’, its product for diffuse intrinsic pontine glioma (DIPG) and potentially other pediatric brain cancers, as well as to develop an internal pipeline of ‘Q-Sphera’ formulation for partnering, and for working capital and general corporate purposes.

“Application has 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 0800 BST on 22 May,” the board said in its statement.

At 1543 BST, shares in Midatech Pharma were down 5.84% at 24.01p.