Company: BDRX
Filing Date: 2025-01-17
Form Type: F-1
Source: 0001214659-25-000922
Chunk: 404

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-01-17
Form: F-1
Chunk 404
---
 equity                |     | –               |     |          2 |     | –           |

| F-64 |

| 19 | Financial instruments – risk management (continued) |

Liquidity risk

Liquidity risk arises
from the Group’s management of working capital. It is the risk that the Group will encounter difficulty in meeting its financial
obligations as they fall due. It is the Group’s aim to settle balances as they become due.

In February 2023, the
Company completed a Private Placement in the US which raised £5.0million before expenses. In May 2023, the Company completed a Registered
Direct Offering in the US which raised £2.7million before expenses. In December 2023, the Company completed a Registered Offering
in the US which raised £4.4million before expenses.

In December 2022, the
Company completed a Registered Direct Offering in the US which raised £0.3million before expenses.

In February 2021, previously
issued warrants were exercised resulting in the Company receiving £0.13million before expenses. In July 2021, the Company completed
a UK placing which raised £10.0million before expenses.

The Directors have prepared cash flow forecasts and
considered the cash flow requirement for the Group for the next three years including the period 12 months from the date of approval of
the consolidated financial statements. These forecasts show that further financing will be required before the fourth quarter of 2024
assuming, inter alia, that certain development programs and other operating activities continue as currently planned. If the Company does
not secure additional funding before the fourth quarter of 2024, it will no longer be a going concern and would likely be placed in Administration.

If we raise additional
funds through the issuance of debt securities or additional equity securities, it could result in dilution to our existing shareholders,
increased fixed payment obligations and these securities may have rights senior to those of our ordinary shares (including the ADSs) and
could contain covenants that would restrict our operations and potentially impair our competitiveness, such as limitations on our ability
to incur additional debt, limitations on our ability to acquire, sell or license intellectual property rights and other operating restrictions
that could adversely impact our ability to conduct our business. Any of these events could significantly harm our business, financial
condition and prospects.

In the Directors’
opinion, the environment for financing of small and micro-cap biotech companies remains challenging. While