Shares in R&D company Midatech Pharma (NASDAQ:MTP) have surged after the company announced its registration statement has been declared effective by the US Securities and Exchange Commission (SEC).
Its US-listed shares are currently trading at $3.25 premarket, up 73.80%, while its London-listed shares are up 39% so far today at 44.6p per share.
The registration statement on the form F-1 relates to the permitted resale of up to 12,695,445 ordinary shares with a nominal value of 0.1p, which is represented by 2,539,091 American Depositary Shares (ADS).
The form F-1 registration statement form is commonly used by foreign private companies (non-US companies) that are selling securities in a registered offering in the US for the first time.
The registration statement, while it remains active, allows the stockholders named to publicly resell the ADS’s or ordinary shares with the company not receiving any of the proceeds from the sale.