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Midatech Pharma PLC (LON:MTPH)(NASDAQ:MTP) has raised a total of £4.3mln through a share placing in the UK and a registered direct offering in the US.

The proceeds will be used to fund Midatech’s candidate MTX110, a treatment for certain kinds of brain cancer, the development of an internal pipeline of Q-Sphera formulations for partnering and general corporate purposes.

READ: Midatech reveals expected size of cash hit from termination of MTD201 programme

The firm added it has enough cash resources to fund operations into the second quarter of 2021.

The AIM-listed firm placed 6.6mln shares at 27p each, raising £1.8mln before expenses, and 1.8mln American depository shares at US$1.65 each (equivalent to 27p) plus warrants, raising US$3mln.

All shares combined represent 40% of the company’s issued capital.

Shares in both listings are sold at around 35% discount to Friday’s closing prices.

The firm remains in the ‘offer period’ following a strategic review announced in March.

“Today’s combined US and UK fundraising does not change our priority, that being to extract maximum value from Midatech’s platform technologies for stakeholders,” said chief executive Stephen Stamp.

“What it does do is provide us more time to deliver on some short-term research and development goals and flexibility to secure long term solutions.”