Midatech Pharma PLC (LON:MTPH) shares soared as shareholders approved a strategic investment by Chinese billionaire Lam Kong.
Through his China Medical Systems Holdings and A&B (HK) vehicles, Lam Kong will acquire 77% of the Oxfordshire-based pharma for 3.85p per new share or a total consideration of £8mln.
READ: Chinese billionaire invests £8mln in AIM drug developer Midatech
A licence agreement with both is now in force, giving the billionaire exclusive rights to develop and commercialise Midatech’s assets in China, Hong Kong, Macau and Taiwan.
Craig Cook, Midatech’s chief executive said: “This is a key collaboration for Midatech that provides a strong endorsement of our technologies and pipeline whilst establishing a solid foundation for a successful and ambitious long-term partnership.”
Shares in the AIM-listed company jumped 11% to 4.45p in afternoon trading.