Shares of Midatech Pharma (LON: MTPH) have fallen after the company raised £10 million by placing over 35 million new ordinary shares at an issue price of 0.285p.
The issue price represents a discount of approximately 12.3% to the closing price of 0.325p per share on 28 June 2021.
The placing shares represent around 35.6% of the issued share capital of the company as enlarged by the placing.
The money raised will be used to develop the proof of concept stage, additional monoclonal antibody formulations using its Q-Sphera technology, add new small molecule Q-Sphera programmes to the company’s internal pipeline, initiate a Phase 2 clinical study of MTX110 in DIPG, initiate a pilot Phase 1 clinical study of MTX110 in GBM, and for general corporate purposes.
Midatech said it expects to have sufficient cash resources to fund operations into the first quarter of 2023.
The company’s London-listed shares are currently down 6.92% at 30.3p.
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