By Anthony O. Goriainoff
Shares in Midatech Pharma PLC rose Monday after the company said it had agreed to revise the terms of a private placement, and that it no longer intends to cancel its AIM listing.
Shares at 0923 GMT were up 0.65 pence, or 31%, at 2.75 pence.
The drug-delivery technology company–which is listed in the U.K. and U.S.–said it intends to raise $9.6 million via a private placement which entails providing funds to the company via warrants.
Midatech said it has agreed to increase the exercise price of both A and B warrants to $1.10. The company said the purchase price of the private placement will be the lower of $1–the previously agreed purchase price–and “the 20-day volume weighted average price on the last business day prior to completion less 10%.” It added that if this volume weighted price was less than 90 cents it might terminate the private placement without penalty.
The placement is intended to repay some of Bioasis Technologies Inc.’s debt–which the company said Tuesday it will buy–and for working capital to support the enlarged group’s business plan.
On Dec. 13 the company said it would cancel its trading on London’s junior AIM upon completion of the 4.4 million pounds ($5.3 million) Bioasis purchase.
Write to Anthony O. Goriainoff at [email protected]
