Spanish government approves EUR 6.6m loan to Midatech
Midatech Pharma Plc
$1.08
12:44 28/05/24
Midatech announced on Friday the Spanish government had provisionally approved its Reindustrialisation (Reindus) loan application, relating to its plans for commercial scale-up of its key MTD201 Q-Octreotide development product.
The AIM-traded firm said the loan amount conditionally approved under Reindus was €6.6m, which brought the total public financing available for the project to €8.5m, including previous amounts recently approved by the Basque regional government.
It said the total manufacturing cost of the project was being finalised, and was currently estimated at around €16m.
That total remained subject to finalisation of a number of variables, with provision of the Loan subject to Midatech providing a €2.6m guarantee, which Reindus required as part of the terms of the loan to be paid within 15 days of formal request by Reindus, which was expected within the next month.
The guarantee, and any other potential costs not covered by the approved funding such as personnel costs, was likely to be funded by bank finance and other Basque funding institutions.
Midatech said the loan would accrue interest at a rate of 1.6%, with repayments commencing three years after drawdown, on a repayment period of 10 years thereafter.
“The Reindus loan is a real boost to our commercial manufacturing scale up scheduled over the next 18 to 24 months in Bilbao and, together with other alternative options under consideration by the board such as strategic manufacturing partnerships, can provide all our manufacturing needs in the medium to long term,” said Midatech chief executive officer Craig Cook.
“For our lead program MTD201, completion of the commercial manufacturing is required prior to submitting for marketing authorization in the US and EU, and the Reindus loan allows us to plan and move ahead with more confidence.”