Midatech Pharma PLC shareholders approved the sale of the company's supportive-care unit, Midatech Pharma US Inc., to Kanwa Holdings LP for up to $19 million.

Kanwa is an acquisition vehicle formed by Charlotte, N.C.-based investment manager Barings LLC for the transaction.

The divestment will allow Midatech to streamline its business from a specialty pharma to a pure-play biotech company and focus on advancing its higher-value oncology pipeline.

The deal comprises an initial consideration of $13 million, to be paid on closing, plus up to $6 million, based on 2018 and 2019 net sales performance of certain MTP US products.

Net proceeds of the sale will be used for research and development priorities and for repaying Midatech's outstanding loan to MidCap Financial of over $7 million, plus certain fees.

The company expects the sale to be completed by Oct. 31.