Admission and First Day of Dealings on AIM following £32 million Placing and Completion of Acquisition of Q Chip

Oxford, UK – Midatech, a nanomedicine company developing and commercialising multiple therapeutic products to enhance the delivery of medicines in major diseases with high unmet medical needs, is pleased to announce the Admission to trading on the AIM Market of the London Stock Exchange of its entire issued share capital, and the commencement of dealings, at 8.00 a.m. GMT today under the ticker code "MTPH" (ISIN number GB00BRTL9B63). Panmure Gordon (UK) Limited is acting as Nominated Adviser and sole broker to the Company.

In conjunction with Admission, Midatech has raised £32 million (before expenses) by way of a placing of 11,985,019 new ordinary shares at 267 pence per share (the "Placing Price"). Upon Admission, the Company will have 27,794,260 ordinary shares in issue, giving Midatech a market capitalisation of £74.2 million at the Placing Price. In addition to the £32 million, an existing investor has subscribed £1.9 million, which was a debt due to repaid at the point of the Initial Public Offering.

Significant new shareholders include Woodford Fund Management Limited (19.99% holding after Admission), Arrowgrass Capital Partners LLP (5.3%), Legal & General Investment Management Limited (4.0%) and Octopus Investments Limited (3.6%).

Upon Admission, Midatech has completed its acquisition of Q Chip Limited and its subsidiaries ("Q Chip"), a sustained release specialist company based in Wales, for a total consideration of 5,376,746 Consideration Shares, of which the 5,077,122 Initial Consideration Shares have been issued on Admission.

Q Chip has developed a complementary technology and products that allow sustained release of substances over extended periods of time. The Directors believe that sustained release technology provides the added capacity to sustain the optimal range of drug concentrations, which has wide medical applicability with diverse pharmaceutically active molecules.

Jim Phillips, CEO of Midatech Pharma plc, said: "Midatech is at an exciting stage in its evolution: progressing a portfolio of product programmes towards commercialisation. These products offer multiple revenue opportunities, first through the licensing of partner-supported products and then our own product sales, as Midatech develops into a speciality pharma company with multiple product launches. The acquisition of Q Chip brings further value to our offering, adding a complementary technology platform and a range of additional advanced product programmes that have the potential to deliver accelerated revenue streams."

"The proceeds from the IPO will enable Midatech to rapidly move ahead, executing on the strategic plan to become a profitable, fast growth company by moving our own products forward, whilst continuing to partner our core technologies for revenue."

Midatech was advised on its Admission to AIM and acquisition of Q Chip by the Life Sciences Group at Brown Rudnick LLP.

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