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Midatech raises £5m to fund Q-Sphera development
27th Jul 2020 11:25
(Sharecast News) - Drug delivery technology company Midatech Pharma has raised £5m before expenses via a placing to investors in the UK, it announced on Monday, to advance and develop its 'Q-Sphera' products and technology, and for general corporate purposes.
The AIM and Nasdaq-traded firm said the placing consisted of 18,518,518 new shares at a price of 27p each, adding that it was "significantly" oversubscribed, bringing new UK institutions to its shareholder base.
It noted that the issue price represented a discount of around 32% to the closing middle market price of 39.5p per existing share on 24 July, with the placing shares representing about 32% of its enlarged issued share capital.
The board said the proceeds, net of fees and expenses, were expected to total £4.6m, and would be used to advance its internal pipeline of Q-Sphera products through proof-of-concept and in vivo studies for potential out-licensing.
They would also be used to develop Q-Sphera technology for unique application with biologic active pharmaceutical ingredients, as well as for general corporate purposes.
Taking into account available cash resources and the expected net proceeds, Midatech said it would have sufficient cash resources to fund operations into the fourth quarter of 2021.
"I am delighted with the progress we have made since we switched our Q-Sphera strategy to a balanced internal pipeline and partner collaboration model," said chief executive and chief financial officer Stephen Stamp.
"In only a few weeks we have both formulated internal candidates and demonstrated their in vitro dissolution; our next step is to confirm these results in vivo.
"We have also signed research and development collaborations with two prestigious partners to explore the feasibility of applying our technology to their proprietary molecules."
Stamp said that if successful, the company planned to enter into licence and technology transfer agreements with its partners.
"The proceeds of the UK placing and broker option will allow us to take our internal pipeline through proof-of-concept and develop the Q-Sphera technology for unique applications with biologic active pharmaceutical ingredients."
At 1121 BST, shares in Midatech Pharma were down 8.23% in London, at 36.25p.
The AIM and Nasdaq-traded firm said the placing consisted of 18,518,518 new shares at a price of 27p each, adding that it was "significantly" oversubscribed, bringing new UK institutions to its shareholder base.
It noted that the issue price represented a discount of around 32% to the closing middle market price of 39.5p per existing share on 24 July, with the placing shares representing about 32% of its enlarged issued share capital.
The board said the proceeds, net of fees and expenses, were expected to total £4.6m, and would be used to advance its internal pipeline of Q-Sphera products through proof-of-concept and in vivo studies for potential out-licensing.
They would also be used to develop Q-Sphera technology for unique application with biologic active pharmaceutical ingredients, as well as for general corporate purposes.
Taking into account available cash resources and the expected net proceeds, Midatech said it would have sufficient cash resources to fund operations into the fourth quarter of 2021.
"I am delighted with the progress we have made since we switched our Q-Sphera strategy to a balanced internal pipeline and partner collaboration model," said chief executive and chief financial officer Stephen Stamp.
"In only a few weeks we have both formulated internal candidates and demonstrated their in vitro dissolution; our next step is to confirm these results in vivo.
"We have also signed research and development collaborations with two prestigious partners to explore the feasibility of applying our technology to their proprietary molecules."
Stamp said that if successful, the company planned to enter into licence and technology transfer agreements with its partners.
"The proceeds of the UK placing and broker option will allow us to take our internal pipeline through proof-of-concept and develop the Q-Sphera technology for unique applications with biologic active pharmaceutical ingredients."
At 1121 BST, shares in Midatech Pharma were down 8.23% in London, at 36.25p.