Midatech raises £15m in oversubscribed placing

International specialty pharmaceutical company Midatech Pharma announced the results of the oversubscribed placing on Tuesday afternoon, which was announced earlier in the morning.

The AIM-traded firm said a total of 14,545,455 placing shares were conditionally placed by Panmure Gordon at an Issue Price of 110p per new share to raise a total of approximately £16m for, amounting to net proceeds of approximately £15m after fees and expenses.

It said the placing shares represent approximately 43.4%. of the existing ordinary shares of the Company, with the issue price representing a discount of 14.5% to the mean middle market closing price of an ordinary share over the previous ten trading days up to and including 10 October.

The net proceeds of the placing will be used to invest in expanding and advancing its development pipeline, including for Q-Octreotide MTD 201 and its MTX 110/MTX 111 treatment for DIPG, in addition to investing in its manufacturing and commercial platform and providing additional working capital to the group.

“The funds raised today will provide Midatech with additional financial resources to accelerate the development of our diverse, oncology-focused pipeline,” said CEO Dr Jim Phillips.

“Midatech is rapidly evolving as a specialty pharma company and, together with revenues from our US commercial operations, we now have the financial flexibility to support our future growth.

“We would like to thank our existing and new shareholders for participating in the oversubscribed fundraise and look forward with confidence to delivering several potential commercial and development milestones in the remainder of this year and through 2017.”