Midatech Pharma to acquire Bioasis Technologies for £4.4 million

Midatech Pharma to acquire Bioasis Technologies for £4.4 million

LONDON, UK: Midatech Pharma (AIM: MTPH.L) has conditionally agreed to acquire the entire issued and to be issued share capital of Bioasis Technologies Inc. for consideration of, in aggregate, approximately C$7.4 million (c.£4.4 million).

The acquisition consideration will be satisfied by the issue of 75,884,553 new ordinary shares of 0.1 pence each in the capital of Midatech Pharma at an exchange ratio of 0.9556 ordinary shares for every 1 Bioasis Share.

Bioasis’ lead product is Epidermal Growth Factor, which is being developed for optic neuritis associated with multiple sclerosis (MS).

Bioasis Technologies is also developing xB3 delivery technology for various rare and orphan neurodegenerative diseases and has entered into licensing and co-development agreements with potential payments, should various performance conditions and milestones be met, totalling in excess of US$200 million plus royalties on net sales with Chiesi Farmaceutici SpA, Prothena Corporation plc and Neuramedy Co. Ltd. Bioasis also has a research agreement with Janssen Pharmaceutica NV, a Johnson & Johnson subsidiary.

Commenting, Stephen Stamp, CEO of Midatech Pharma, said: “We are very pleased to be announcing the proposed acquisition of Bioasis, together with an associated US$10 million equity fundraising and other proposals that the Midatech board believe presents a compelling strategic opportunity aimed at delivering significant benefits to Midatech and its shareholders.

“By combining the two groups to create Biodexa Pharmaceuticals, we have the opportunity to reposition the enlarged group as an emerging biotech company focused on the development of therapeutics for rare diseases, supported by Midatech and Bioasis’ enabling drug delivery platforms.

We continue to believe there is substantial value to be unlocked from Midatech’s MTX110, particularly in our ongoing phase I clinical trial in GBM, and to leverage our Q-Sphera technology. In combination with Bioasis’ promising development pipeline we have the opportunity to create a much stronger group and transition from a drug delivery platform-based company to a therapeutics company.

“Whilst the proposals require a complex process and a number of structural changes that will take time to complete, we strongly believe they are in shareholder’s best interests and we look forward to making further announcements in due course.”

Midatech Pharma is an R&D biotechnology company focused on improving the bio-delivery and biodistribution of medicines.

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