11th Oct 2016 10:30
LONDON (Alliance News) - Pharmaceutical firm Midatech Pharma PLC said Tuesday it is proposing a placing and open offer to raise proceeds up to GBP14.0 million.
AIM-listed Midatech said it is proposing a placing of shares with existing and new investors to raise gross proceeds of not less than GBP12.0 million, in order to invest in its development pipeline, manufacturing and commercial platform and provide additional working capital.
Midatech said the placing will be conducted via an accelerated bookbuild to be closed on Tuesday, with details of the number and price of the placed shares to be announced after the close.
Panmure Gordon will act as adviser and bookrunner to the placing,
Midatech said it also is making an open offer to eligible shareholders to subscribe for new shares, to raise gross proceeds up to around GBP2.0 million.
Midatech said the net proceeds of the open offer will be used as further working capital, and the offer is not underwritten.
Both the placing and open offer are conditional on the approval of shareholders at a general meeting on October 28.
"Midatech is rapidly evolving as a specialty pharma company, and as revenues from our US commercial operations continue to grow, the funds raised in the proposed Placing and Open Offer will provide the Company with additional financial resources to accelerate the development of our diverse, oncology-focused pipeline and to support the working capital requirements of the Group to underpin further growth," said Jim Phillips, chief executive officer.
Shares in Midatech were down 6.3% at 123.75 pence Tuesday.
By Adam Clark; [email protected]
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