Midatech Pharma PLC agreed to sell 3 million American depositary shares to an institutional investor at $1 apiece in a registered direct offering.
The Cardiff, U.K.-based biotechnology company expects to generate $3 million in gross proceeds from the transaction. Each ADS represents 20 ordinary shares of the company.
Additionally, the institutional investor in the offering will receive unregistered warrants to buy up to 3 million ADSs in a concurrent private placement. The warrants are exercisable for $1.25 apiece and will expire in five and a half years.
Closing of the offering will occur on or about Oct. 25, subject to closing conditions.
Midatech applied for the admission of the 60 million new ordinary shares to trading on the London Stock Exchange's AIM, expected to occur Oct. 29.
H.C Wainwright & Co. is acting as the exclusive placement agent in the offering.