LONDON, UK: Midatech Pharma (AIM: MTPH.L) has conditionally agreed to purchase the entire issued and to be issued share capital of Bioasis Technologies Inc. for consideration of, in aggregate, roughly 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 every within 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 related to a quantity of sclerosis (MS).
Bioasis Technologies is additionally developing xB3 supply technology for various uncommon and orphan neurodegenerative diseases and has entered into licensing and co-development agreements with potential payments, ought to various efficiency conditions and milestones be met, totalling in extra of US$200 million plus royalties on net gross sales with Chiesi Farmaceutici SpA, Prothena Corporation plc and Neuramedy Co. Ltd. Bioasis additionally has a analysis settlement with Janssen Pharmaceutica NV, a Johnson & Johnson subsidiary.
Commenting, Stephen Stamp, CEO of Midatech Pharma, said: “We are very happy to be announcing the proposed acquisition of Bioasis, along with an related US$10 million fairness fundraising and different proposals that the Midatech board believe presents a compelling strategic alternative aimed at delivering significant advantages to Midatech and its shareholders.
“By combining the 2 teams to create Biodexa Pharmaceuticals, we have the chance to reposition the enlarged group as an rising biotech firm focused on the event of therapeutics for uncommon diseases, supported by Midatech and Bioasis’ enabling drug supply platforms.
We proceed to believe there is substantial worth 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 mixture with Bioasis’ promising development pipeline we have the chance to create a a lot stronger group and transition from a drug supply platform-based firm to a therapeutics company.
“Whilst the proposals require a complex course of and a variety of structural changes that will take time to complete, we strongly believe they’re in shareholder’s best pursuits and we glance ahead to creating additional bulletins in due course.”
Midatech Pharma is an R&D biotechnology firm focused on improving the bio-delivery and biodistribution of medicines.