Midatech Pharma PLC (LON: MTPH) have reached a binding agreement with an unnamed institutional investor with takes a £3 million stake, equating to 20% in the firm.
The investor, who is yet to be identified will acquire American Depositary Shares (ADS) for one dollar each, or the equivalent of buying the UK stock at 3.9p per share.
The firm will also receive warrants to purchase a further 3 million ADS for $1.25 each, or 4.9p per UK share.
US firm HC Wainwright is acting as the exclusive placement agent for the offering.
Midatech are developing a new range of chemotherapies, and new immuno-therapeutics using its three drug delivery platforms.
Only a few days ago, the firm announced their plans to trial a hormone based cancer treatment.
Topline results from this study is expected in early 2020.
Despite shares being volatile, seniors at Midatech have been confident in their ability to produce results amidst a period of new product development.
“We are excited at the prospect of our products progressing in the clinic and making a difference for patients and create value for our shareholders,” the company said alongside interim results.
Chief Executive Craig Cook commented on their interim results, ““The first half of this year saw us achieve some important milestones. Alongside a successful fundraise we secured our largest ever licensing partnership for our technology with CMS”
Cook added “We have moved our in-house programmes forward and now have a clear, deliverable development plan for our lead product MTD201, together with the exciting potential of our MTX110 programme, with further clinical data expected from both programmes in the near term.”
This is an interesting period for Midatech. The unnamed investment will give opportunities for growth and product development but how this is used is a different matter.
Elsewhere in the Pharma market RA Pharmaceuticals (NASDAQ: RARX) have received a takeover proposal from UBS (EBR: UCB), whilst Tissue Regenix (LON: TRX) have issued warnings of lower revenues, driving share prices down.
Currently, shares of Midatech are trading at 5p per share 23/10/2019 10:42BST.