Midatech Pharma PLC (AIM:MTPH) fell another 13% to 3p on Wednesday, having now slashed its market valuation by half in the past five days.
A day earlier, Midatech announced the proposed acquisition of Canada-listed Bioasis Technologies Inc for C$7.4mln (£4.4mln).
Following the merger, Midatech will cease trading in London in favour of Nasdaq Canada, where the combined entity will trade under new name Biodexa Pharmaceuticals plc.
"We are very pleased to be announcing the proposed acquisition of Bioasis, together with an associated US$10mln equity fundraising and other proposals that the Midatech board believe presents a compelling strategic opportunity aimed at delivering significant benefits to Midatech and its shareholders,” said Midatech chief Stephen Stamp.
Midatech market capitalisation currently stands at less than £3mln.