18th May 2020 15:38
(Alliance News) - Midatech Pharma PLC on Monday said it has raised USD3 million through the offering of 1.8 million American Depositary Shares at USD1.65 each, as it announced its intention to raise an additional GBP1.8 million through the placing of 6.7 million shares at 27 pence each.
Shares in the drug delivery technology company were trading 32% lower at 28.15p each on Monday afternoon in London.
Midatech said the cash raised - GBP500,000 net - will be used to fund its MTX110 clinical programme, the development of an internal pipeline of Q-Sphera formulations for partnering, and for general corporate purposes. MTX110 is a possible childhood brain cancer treatment and Q-Sphera is Midatech's microencapsulation technology.
The company said it expects the placing proceeds combined with its available cash resources to be sufficient to fund its operations into the second quarter of 2021.
Following admission of the new shares, Midatech's share capital will comprise 39.3 million shares.
By Ife Taiwo; [email protected]
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