Proactive Investors - Run By Investors For Investors

Midatech Pharma unveils plans for £4mln equity raise to support drug trials

The news comes less than a week after Midatech said Chinese billionaire, Lam Kong, would pay £8mln for a 77.3% stake in the company
Midatech
Midatech says it is poised for a 'transformational period of growth with our R&D pipeline'

Midatech Pharma PLC (LON:MTPH)  has proposed a £4mln equity raise to support the development of its lead product MTD201.

The group plans to issue units, compromising of one new ordinary share and one warrant, at a price of 3.85p each, representing a 6.1% discount to the mid-market closing price on Friday. 

Midatech hopes to raise a further £750,000 through an open offer.  

The news of the fundraising comes less than a week after Midatech said Chinese billionaire, Lam Kong, would pay £8mln for a 77.3% stake in the company through his China Medical System and A&B Company businesses.

READ: Chinese billionaire invests £8mln in AIM drug developer Midatech

Midatech plans to use the proceeds of the investment from Kong, the issue of units and open offer to fund a pivotal clinical trial of MTD201 – a potential treatment for the hormonal disorder, acromegaly, and neuroendocrine tumours such as carcinoid cancer.

The trail is estimated to cost about £5mln-£7mln and is expected to begin in the second half of this year.

The funds will also help with the phase 1 and 2 trials of MTX110 for the treatment of DIPG - a very rare and fatal childhood brain cancer that has an average survival rate of nine months.

Midatech said the net proceeds of the placing and subscription are expected to provide the company with an estimated cash runway until the first quarter of 2020.

Based on current estimates of costs related to trials, group believes the funding would allow it to deliver “top-line data readout on a pivotal MTD201 clinical trial and potentially interim efficacy data on MTX110's open-label study”.

“We believe that Midatech is poised for a transformational period of growth with our R&D pipeline,” said Midatech chief executive Craig Cook. 

View full MTPH profile View Profile

Midatech Pharma PLC Timeline

Related Articles

patch
Mon
The New Jersey company's lead product is Twirla, a low-dose prescription contraceptive applied once weekly for three weeks, followed by a week without the patch
scientist at petrie dish
Wed
Here we take a closer look at Midatech Pharma PLC (LON:MTPH)
Vial of pills
June 25 2018
Cosmos is a modern company, but the trade routes it relies on are ancient

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use