4th Feb 2019 18:38
LONDON (Alliance News) - Midatech Pharma PLC said Monday it has raised GBP4.7 million via a share placing and open offer.
Midatech said the placing and open offer was made at 3.85 pence for a unit composed of one share and one warrant for a share. Midatech shares closed down 2.4% on Monday at 4.00p.
The research & development company focused on oncology and rare disease products placed 121 million units.
The open offer was 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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