TIDMMTPH
RNS Number : 0415P
Midatech Pharma PLC
04 February 2019
NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE DIRECTLY OR
INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES,
CANADA, AUSTRALIA, NEW ZEALAND, JAPAN OR THE REPUBLIC OF SOUTH
AFRICA OR IN ANY OTHER JURISDICTION IN WHICH OFFERS OR SALES WOULD
BE PROHIBITED BY APPLICABLE LAW. THIS ANNOUNCEMENT IS NOT AN OFFER
TO SELL OR A SOLICITATION TO BUY SECURITIES IN ANY JURISDICTION,
INCLUDING THE UNITED STATES, CANADA, AUSTRALIA, JAPAN AND THE
REPUBLIC OF SOUTH AFRICA. NEITHER THIS ANNOUNCEMENT NOR ANYTHING
CONTAINED HEREIN SHALL FORM THE BASIS OF, OR BE RELIED UPON IN
CONNECTION WITH, ANY OFFER OR COMMITMENT WHATSOEVER IN ANY
JURISDICTION.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF REGULATION 2014/596/EU. IN ADDITION, MARKET
SOUNDINGS WERE TAKEN IN RESPECT OF THE MATTERS CONTAINED IN THIS
ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN PERSONS BECAME AWARE OF
SUCH INSIDE INFORMATION. UPON THE PUBLICATION OF THIS ANNOUNCEMENT,
THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC
DOMAIN AND SUCH PERSONS SHALL THEREFORE CEASE TO BE IN POSSESSION
OF INSIDE INFORMATION.
4 February 2019
Midatech Pharma PLC
("Midatech" or the "Company")
Result of the Placing
Launch of the Open Offer
Midatech Pharma (AIM: MTPH, Nasdaq: MTP), the R&D company
focused on delivering innovative oncology and rare disease products
to patients, is pleased to announce the completion of the Placing
announced earlier today ("Placing Launch Announcement").
The Company has conditionally raised, in aggregate,
approximately GBP4.7 million, before expenses, by way of the
Placing of 120,966,718 Units (each Unit comprising one Placing
Share and one Warrant) at the Issue Price of 3.85 pence per
Unit.
Together with the Subscription, the Company has therefore
conditionally raised gross proceeds of approximately GBP12.7
million.
Open Offer
In addition, to provide Qualifying Shareholders with an
opportunity to participate in the fundraise at the Issue Price, the
Company is making an Open Offer to all Qualifying Shareholders to
raise additional gross proceeds of up to approximately GBP0.75
million for the Company through the offer of up to 19,456,554
Units. The Open Offer is being made on the basis of:
0.318 Open Offer Units (comprising one Open Offer Share and one
Warrant) for every 1 Existing Ordinary Share held by the Qualifying
Shareholder on the Record Date.
Any entitlements to Open Offer Units not subscribed for by
Qualifying Shareholders will be available to Qualifying
Shareholders under the Excess Application Facility. A timetable in
respect of the Open Offer is set out below.
The Placing and Open Offer follows the Company's announcement on
29 January 2019 (the "Subscription Announcement") that it has
entered into conditional agreements with a subsidiary of China
Medical System Holdings Limited ("CMS") and A&B (HK) Company
Ltd to raise GBP8 million in aggregate through the issue of
207,792,206 Units at the Issue Price. Subject to completion of the
Subscription, the Company has entered into the CMS Licence
Agreement for the development and commercialisation of the Group's
pipeline of products in Greater China and certain countries in
south east Asia. The Placing and Open Offer Units are priced on
identical terms as the Subscription.
The aggregate net proceeds of the Placing and Subscription of
approximately GBP11.6 million (after fees and expenses) are
expected to provide the Company with an estimated cash runway
through Q1 2020. Based on current expectations on trial design,
clinical trial approvals and associated costs, the Directors
believe that this funding would allow the Company to deliver data
read-out on a pivotal MTD201 clinical trial and potentially interim
efficacy data on MTX110's open label study.
The Placing Shares and the Subscription Shares represent
approximately 84.3% per cent. of the issued share capital of the
Company as enlarged by the Placing and Subscription. The Issue
Price represents a discount of approximately 6.1 per cent. to the
middle market closing price of an Ordinary Share as at 1 February
2019. The Placing and Subscription has received support from both
existing and new Shareholders.
The Placing and Open Offer is conditional upon, inter alia:
-- the passing of the Resolutions in order to ensure that the
Directors have the necessary authorities and powers to allot the
New Ordinary Shares;
-- admission of the New Ordinary Shares to trading on AIM becoming effective; and
-- the Placing Agreement between the Company, Stifel and Panmure
Gordon not having been terminated.
Commenting on the Placing and Open Offer, Craig Cook, CEO of
Midatech Pharma, said: "We would like to thank investors for their
support, which allows us to further advance our innovative
pipeline. With the combined proceeds of the Capital Raising, we
believe that Midatech is poised for a transformational period of
growth and the funds should enable us to proceed with the Pivotal
MTD201 trial, scheduled to commence around mid 2019, whilst
supporting the US MTX110 Phase I/II trial currently ongoing."
Concert Party holding
As noted in the Placing Launch Announcement, the Subscription is
also conditional on Shareholder approval of the Resolutions. The
terms of the Subscription give rise to certain considerations under
the Takeover Code as a result of the proposed issue of Subscription
Shares and Subscriber Warrants to the Subscribers. CMS, (including
its subsidiary CMS Venture), A&B (HK) and Mr. Lam Kong together
comprise a concert party (the "Concert Party"). Assuming completion
of the Placing but excluding the Open Offer Shares, upon completion
of the Subscription, the Concert Party would have an aggregate
shareholding in the Company of approximately 53.3 per cent. of the
so enlarged share capital. The issue of the Warrants to the
Subscribers would mean that, if exercised (and assuming no other
new Ordinary Shares are issued prior to any such exercise and
excluding any shares which may be issued pursuant to the Open
Offer), the Concert Party's aggregate shareholding would increase
to up to 415,584,412 Ordinary Shares, representing up to 69.5 per
cent. of the then further enlarged share capital of the Company.
Accordingly, completion of the Subscription and the CMS Licence
Agreement is also conditional on a waiver of Rule 9 of the Takeover
Code being permitted by the Takeover Panel, which would be subject
to the approval by the Independent Shareholders of a waiver of any
obligation of the Concert Party (or any of its members) to make a
mandatory general offer to the Company's shareholders under Rule 9
of the Takeover Code upon issue of the Subscription Shares arising
from the Subscription and upon exercise of the Subscriber Warrants
granted to the Subscribers ("Panel Waiver"). There is no guarantee
that the Independent Shareholders will approve the Panel Waiver. If
the Panel Waiver is not approved, neither the Subscription, the CMS
Licence Agreement, the Placing or the Open Offer will proceed and,
as noted in the Placing Launch Announcement, it is unlikely that
the Company will be able to continue as a going concern.
Subject to the Panel Waiver being approved and completion of the
Placing and Subscription, on Admission, the Concert Party will hold
more than 50 per cent. of the Company's voting share capital. In
these circumstances, for so long as the members of the Concert
Party continue to be treated as acting in concert, the Concert
Party may increase its aggregate interest in the Ordinary Shares
without incurring any obligation under Rule 9 of the Takeover Code
to make a general offer, although individual members of the Concert
Party will not be able to increase their percentage interests in
Ordinary Shares through or between a relevant Rule 9 threshold
without the consent of the Takeover Panel.
The Company intends to publish a circular setting out full
details of the Panel Waiver, further information on the Concert
Party, and the terms and conditions of the Open Offer together with
application forms for the Open Offer and notice of the General
Meeting to be held on 25 February 2019 (the "Circular") on or
around 5 February 2019. The Circular will also be available at this
time on the Company's website at www.midatechpharma.com.
Subject to all conditions being met, application will be made to
the London Stock Exchange for Admission. Subject to, amongst other
things, the Resolutions being passed by the requisite majorities at
the General Meeting, it is expected that settlement of any such
shares and Warrants and Admission will become effective on or
around 26 February 2019 and that dealings in the Placing Shares
will commence at that time.
A further announcement will be made regarding the outcome of the
Open Offer and the new total number of voting rights in Midatech
(subject to Admission) on or around the 25 February 2019.
Related party transaction
Woodford Investment Management Ltd, in its capacity as
discretionary investment manager, acting as agent on behalf of
Woodford Patient Capital Trust and the LF Woodford Equity Income
Fund, a sub fund of LF Woodford Investment Fund ("Woodford") has
subscribed for Placing Shares at the Issue Price of 3.85 pence. As
at 1 February 2019 (being the latest practicable date prior to the
publication of this announcement) and, subject to and immediately
following Admission, the interest of Woodford Investment Group in
the issued share capital of the Company is as follows:
Number of Percentage Number of Number of Percentage
Existing of existing Placing Ordinary of Enlarged
Ordinary issued share Shares subscribed Shares held Share Capital
Name Shares capital for on Admission on Admission*
Woodford Investment
Management 12,247,629 20.0% 65,740,585 77,988,214 20.0%
----------- -------------- ------------------- -------------- ---------------
*Assuming full take up of the Open Offer
The participation by Woodford in the Placing constitutes a
related party transaction for the purposes of the AIM Rules. The
independent Directors for the purpose of the Placing, having
consulted with the Company's nominated adviser, Panmure Gordon,
consider that the terms of the related party transaction are fair
and reasonable insofar as the Shareholders are concerned.
Open Offer Expected Timetable of Principal Events
Record Date for the Open Offer 6.00 p.m. on 4 February
2019
Ex-entitlement Date 5 February 2019
Publication of the Circular and the Application on or around 5 February
Form and Form of Proxy 2019
Open Offer Entitlements and Excess CREST 8.00 a.m. on 6 February
Open Offer Entitlements credited to stock 2019
accounts of Qualifying CREST Shareholders
in CREST
Recommended last time and date for requesting 4.30 p.m. on 18 February
withdrawal of Open Offer Entitlements from 2019
CREST
Latest time and date for depositing Open 3.00 p.m. on 19 February
Offer Entitlements into CREST 2019
Latest time and date for splitting Application 3.00 p.m. on 20 February
Forms 2019
(to satisfy bona fide market claims only)
Latest time and date for receipt of Forms 9.00 a.m. on 23 February
of Proxy and CREST voting instructions to 2019
be valid at the General Meeting
Latest date for receipt of completed Application 11.00 a.m. on 22 February
Forms and payment in full under the Open 2019
Offer or settlement of relevant CREST instructions
General Meeting 9.00 a.m. on 25 February
2019
Announcement of result of the General Meeting 25 February 2019
and Open Offer
Admission effective and dealings expected 8.00 a.m. on 26 February
to commence in the New Ordinary Shares on 2019
AIM
New Ordinary Shares credited to CREST stock 8.00 a.m. on 26 February
accounts 2019
Expected date by which certificates in respect On or prior to w/c
of New Ordinary Shares are to be despatched 4 March 2019
to certificated Shareholders (as applicable).
Expected date by which certificates in respect On or prior to w/c
of the Warrants are to be despatched to 4 March 2019
Shareholders.
If any of the details contained in the timetable above should
change, the revised times and dates will be notified by means of an
announcement through a Regulatory Information Service.
All references are to London time unless stated otherwise.
Dealing codes for the open offer
ISIN of the Ordinary Shares: GB00BRTL9B63
The ISIN of the Open Offer Entitlements: GB00BF559Q37
The ISIN of the Excess Open Offer Entitlements: GB00BF559R44
ISIN of the Warrants: GB00BF55CP34
The capitalised terms not otherwise defined in the text of this
announcement are as set out in the Placing Launch Announcement.
-S -
For further information, please contact:
Midatech Pharma PLC
Craig Cook, Chief Executive Officer 01235 888300
Panmure Gordon (UK) Limited (NOMAD and Joint Bookrunner)
Freddy Crossley, Emma Earl (Corporate Finance) 020 7886 2500
James Stearns (Corporate Broking)
Stifel Nicolaus Europe Limited (Joint Bookrunner)
Jonathan Senior, Ben Maddison 0207 710 7600
Consilium Strategic Communications
Mary-Jane Elliott, Nicholas Brown, Angela Gray 0203 709 5700
Notes for Editors
About Midatech Pharma PLC
Midatech Pharma (LSE AIM: MTPH; NASDAQ: MTP) is an R&D
company focused on delivering innovative oncology and rare disease
products to patients. The Company is developing a range of improved
chemo-therapeutics or new immuno-therapeutics, using its
three-proprietary platform drug delivery technologies, all of which
are in the clinic, specifically:
1. Q-Sphera(TM) platform: our disruptive polymer microsphere
technology used for sustained release at the microscale to prolong
and control the release of therapeutics over an extended period of
time from weeks to months.
2. MidaCore(TM) platform: our leading-edge gold nanoparticle
technology used for targeting sites of disease at the nanoscale
i.e. i. chemotherapy - may provide improved and targeted delivery
of existing chemotherapeutic agents to tumour sites, as well as ii.
immunotherapy - may enhance uptake of new immuno-moieties by immune
cells that can then mount an immune attack against cancer
cells.
3. MidaSolve(TM) platform: our innovative nanosaccharide
technology used to dissolve drugs at the nanoscale so that they can
be administered in liquid form directly and locally into
tumours.
Each of our three technologies are thus focussed on improved
bio-delivery and bio-distribution of medicines or agents to areas
of the body where they are needed and can exert their actions in an
effective, safe and precise manner.
Midatech is headquartered in Oxfordshire, with an R&D
facility in Cardiff and a manufacturing operation in Bilbao, Spain.
For more information please visit www.midatechpharma.com.
IMPORTANT NOTICES
This Announcement has been issued by, and is the sole
responsibility of, the Company.
The content of this Announcement has not been approved by an
authorised person within the meaning of the Financial Services and
Markets Act 2000.
Panmure Gordon (UK) Limited, which is authorised and regulated
in the United Kingdom by the Financial Conduct Authority (the
"FCA"), is acting as Nominated Adviser (for the purposes of the AIM
Rules for Companies and the AIM Rules for Nominated Advisers) and
Joint Bookrunner to the Company in connection with the Placing and
is not acting for, and will not be responsible to, any person other
than the Company for providing the protections afforded to
customers of Panmure Gordon (UK) Limited or for advising any other
person on any transaction or arrangement referred to in this
Announcement.
Stifel Nicolaus Europe Limited, which is authorised and
regulated in the United Kingdom by the Financial Conduct Authority
(the "FCA"), is acting as Joint Bookrunner to the Company in
connection with the Placing and is not acting for, and will not be
responsible to, any person other than the Company for providing the
protections afforded to customers of Stifel Nicolaus Europe Limited
or for advising any other person on any transaction or arrangement
referred to in this Announcement.
No representation or warranty, express or implied, is or will be
made as to, or in relation to, and no responsibility or liability
is or will be accepted by Panmure Gordon or Stifel or by any of
their affiliates or agents as to, or in relation to, the accuracy
or completeness of the Announcement or any other written or oral
information made available to or publicly available to any
interested party or its advisers, and any liability therefor is
expressly disclaimed.
This Announcement may not be published, distributed, forwarded
or transmitted directly or indirectly, in whole or in part, in or
into the United States. These materials do not constitute an offer
to sell, or a solicitation of an offer to buy, securities in the
United States.
The securities described in this Announcement have not been, and
will not be, registered under the U.S. Securities Act of 1933, as
amended (the "US Securities Act"), or under the securities laws of
any state or other jurisdiction of the United States and may not be
offered, sold, resold, transferred or delivered, directly or
indirectly, within the United States except pursuant to an
exemption from, or in a transaction not subject to, the
registration requirements of the US Securities Act. The securities
are being offered only outside of the United States in reliance on
Regulation S under the US Securities Act.
Furthermore, the securities have not been and will not be
registered under the applicable laws of any of Canada, Australia,
Japan, New Zealand or the Republic of South Africa or of any other
jurisdiction where to do so would be unlawful and, consequently,
may not be offered or sold to any national, resident or citizen
thereof. The distribution of this Announcement in or into
jurisdictions other than the United Kingdom may be restricted by
law and therefore any person who is subject to the laws of any
jurisdiction other than the United Kingdom should inform themselves
about, and observe, such restrictions. Any failure to comply with
the applicable restrictions may constitute a violation of the
securities laws of any such jurisdiction.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release may constitute
"forward-looking statements" within the meaning of legislation in
the United Kingdom and/or United States. Such forward-looking
statements include, but are not limited to, statements expressed or
implied regarding our plans, goals, and milestones, our ability to
successfully test, manufacture, produce or commercialise products
for conditions using the Q-Sphera(TM) microsphere platform,
MidaSolve(TM) nanosaccharide technology, MidaCore(TM) gold
nanoparticle platform, the ability for products in development to
achieve positive clinical results, the ability to meet or achieve
timelines associated with pre-clinical studies, clinical trials or
regulatory submissions and the associated costs of such studies,
trials or submissions, the ability to complete all or a portion of
the Capital Raising or the CMS Licence Agreement on the terms
outlined in this Announcement or at all, the ability to obtain
approval for such Subscription, Placing, Open Offer and CMS Licence
Agreement by the Shareholders, the ability to realise benefits from
the proposed CMS Licence Agreement, the risk that markets do not
evolve as anticipated, and other economic, business and/or
competitive factors. The risks included are not exhaustive. Any
forward-looking statements are based on currently available
competitive, financial and economic data together with management's
views and assumptions regarding future events and business
performance as of the time the statements are made and are subject
to risks and uncertainties. We wish to caution you that there are
some known and unknown factors that could cause actual results to
differ materially from any future results, performance or
achievements expressed or implied by such forward-looking
statements.
Reference should be made to those documents that we shall file
from time to time or announcements that may be made by the Company
in accordance with the London Stock Exchange AIM Rules for
Companies ("AIM Rules"), the Disclosure and Transparency Rules
("DTRs") and the rules and regulations promulgated by the US
Securities and Exchange Commission, which contains and identifies
other important factors that could cause actual results to differ
materially from those contained in any projections or
forward-looking statements. These forward-looking statements speak
only as of the date of this Announcement. All subsequent written
and oral forward-looking statements by or concerning the Company
are expressly qualified in their entirety by the cautionary
statements above. Statements contained in the Announcement
regarding past trends or activities should not be taken as a
representation that such trends or activities will continue in the
future. The information contained in the Announcement is subject to
change without notice and neither Panmure Gordon or Stifel nor,
except as required by applicable law, the Company assumes any
responsibility or obligation to update publicly or review any of
the forward-looking statements contained herein. You should not
place undue reliance on forward-looking statements, which speak
only as of the date of the Announcement.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
ROIFMGGZRDGGLZM
(END) Dow Jones Newswires
February 04, 2019 13:32 ET (18:32 GMT)
Midatech Pharma (LSE:MTPH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Midatech Pharma (LSE:MTPH)
Historical Stock Chart
From Jul 2023 to Jul 2024