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Midatech says open offer oversubscribed, raises £13.4mln in aggregate from it, a placing and share subscription

The AIM-listed group said it received valid acceptances in respect of 20,870,414 open offer units, representing approximately 107% of the 19,456,554 units offered
At the end of January, Midatech Pharma revealed that Chinese billionaire, Lam Kong was to acquire a 77.3% stake in the company for £8mln

Midatech Pharma PLC (LON:MTPH) (NASDAQ:MTP) said the open offer launched on 4 February together with a placing and share subscription, was oversubscribed with the firm raising £13.4mln in aggregate, before expenses,  from the offerings.

The AIM-listed group – which at the end of January revealed aid Chinese billionaire, Lam Kong a 77.3% stake in the company for £8mln – said it received valid acceptances in respect of 20,870,414 open offer units from qualifying shareholders, representing approximately 107% of the 19,456,554 units offered.

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

It added that, following scale-back, 100% of the 19,456,554 open offer units - comprising one new ordinary share and one warrant) - will be issued at a price of 3.85p each.

The company said all shareholders with valid applications will receive their full allocation of ordinary shares in respect of their basic entitlement, with excess shares allocated at the board’s absolute discretion.

Midatech added that all resolutions put to shareholders were duly passed at its general held earlier today in relation to the fund-raising.

The company also confirmed that, as previously announced, it completed its submission for a loan under the Spanish Ministry of Industry Reindustrialisation programme to cover up to 75% of the qualifying manufacturing scale-up cost, with the loan application outcome still expected to be known around the end of the first half of 2019.

In addition to this, the group added - as announced on 10 January 2019 – it has received approval for funding of €1.5mln for the company's manufacturing facility in Bilbao Spain.

The company confirmed that it received written confirmation from the Basque regional government on 7 January and that the loan finance is available upon submission of invoices by the company for validly incurred scale-up costs.

In said amounts drawn under the facility will be repayable from February 2022 at a rate of € 0.3mln per annum, with no interest in the facility.

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