4th Feb 2019 16:01
LONDON (Alliance News) - Midatech Pharma PLC said Monday it intends to raise a minimum of GBP4.0 million from a share placing, plus up to GBPP750,000 from an open offer.
Midatech, a research & development company focused on oncology and rare disease products, said the GBP4.8 million raised in total will give it an estimated cash runway through the first quarter of 2020.
Midatech said the placing and open offer will be made at 3.85 pence for a unit composed of one share and one warrant for a share. Midatech shares down 2.4% on Monday at 4.00p.
The open offer will be on the basis of 0.318 unit for each one existing share. The warrant allows the purchase of shares at 50p each starting from six months after the new shares are admitted to trading.
The fund raising follows an GBP8 million subscription to Midatech shares, also at 3.85p, by China Medical System Holdings Ltd announced last week.
Midatech noted the subscription by CMS, the placing and the open offer were subject to shareholder approval and warned that if approval wasn't granted "the directors believe it is unlikely that the company will be able to continue as a going concern".
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