Fundraising unveiled by Midatech
Midatech Pharma, a drug delivery technology company with an R&D base in Wales, has outlined plans to raise funds in the UK and US.
The company, which is currently carrying out a strategic review of its operations and announced plans to close its Spanish base earlier this year, is raising gross proceeds of £1.8m by way of a placing to investors in the UK with a further £2.5m to be brought in by a registered direct offering and concurrent private placement in the US.
The combined proceeds, net of fees and expenses, are expected to be approximately £3.8m and will be used to fund the clinical programme of the company’s MTX110 product which tackles diffuse intrinsic pontine gliomas (DIPG) and potentially other paediatric brain cancers.
Funds will also be used for the development of an internal pipeline of Q-Sphera formulations for partnering and for general corporate purposes.
Chief executive Stephen Stamp said: “Today’s combined US and UK fundraising does not change our priority, that being to extract maximum value from Midatech’s platform technologies for stakeholders.
“What it does do is provide us more time to deliver on some short term R&D goals and flexibility to secure long term solutions.”