Document:

Exhibit 4.18

 

	DATED:	29 JANUARY 2019

 

 

 

 

(1) MIDATECH PHARMA PLC

 

 

(2) CERTAIN CMS CONCERT PARTY MEMBERS

 

and

 

(3) PANMURE GORDON (UK) LIMITED

 

 

 

 

 

 

 

 

 

 

 

RELATIONSHIP AGREEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A Limited Liability Partnership

8 Clifford Street

London, W1S 2LQ

United Kingdom

+44-20-7851-6000

Fax: +44-20-7851-6100 

 

    	 	 	 

    	 

    

 

Table of Contents

 

	1	Interpretation	1
	2	Conditionality and duration	4
	3	CMS Concert Party obligations	5
	4	Appointment of the A&B (HK) Director	8
	5	Warranty	10
	6	Confidentiality	10
	7	Waiver and Amendment	11
	8	General	12
	9	Counterparts	14
	10	Law and Jurisdiction	15
	SCHEDULE The CMS Concert party members	16

 

    	 	 	 

    	 

    

 

THIS AGREEMENT is dated 29 January
2019

 

BETWEEN:

 

		(1)	MIDATECH PHARMA PLC, incorporated and registered in England and Wales with company number
09216368, whose registered office is at 65 Innovation Drive, Milton Park, Milton, Abingdon, Oxfordshire, OX14 4RQ (the “Company”);

 

		(2)	The persons listed against numbers 1, 2 and 4 in the Schedule to this Agreement, each a “Contracting
CMS Concert Party Member” and, together, the “Contracting CMS Concert Party”; and

 

		(3)	PANMURE GORDON (UK) LIMITED, incorporated and registered in England and Wales (Registered
No. O4915201), whose registered office is at One New Charge, London EC4M 9AF (“Panmure Gordon”).

 

BACKGROUND:

 

		(A)	The Company intends to undertake a capital raising by way of issuing securities in the Company
(the “Units”), with each Unit consisting of one Ordinary Share and one warrant to subscribe for one Ordinary
Share pursuant to (i) a subscription for Units by CMS and A&B (HK) Company Ltd; (ii) a placing of Units to certain placees;
and (iii) an open offer pursuant to which qualifying shareholders of the Company may apply for Units (together, the “Capital
Raising“).

 

		(B)	In the absence of any other equity raised in the placing and open offer to be undertaken by the
Company, the CMS Concert Party (as defined below) is expected to hold approximately 77.3% of the enlarged issued share capital
of the Company.

 

		(C)	The parties have agreed to enter into this Agreement for the purpose of documenting and regulating
the terms of the relationship between the Company and CMS Concert Party and its Associated Undertakings and ensuring that the Company
can operate independently of the CMS Concert Party.

 

THE PARTIES AGREE THAT:

 

		1	Interpretation

 

		1.1	Definitions

 

In this Agreement:

 

"A&B (HK)"
means A&B (HK) Company Limited.

 

“A&B (HK) Director”
has the meaning given to it by clause 4.1.

 

“A&B (HK) Initial
Director” means Dr. Huaizheng Peng.

 

“Admission”
means admission of the new Ordinary Shares being issued pursuant to the Capital Raising to trading on AIM.

 

“AIM” means
the market of that name operated by the London Stock Exchange.

 

“AIM Rules”
means the AIM Rules for Companies published by the London Stock Exchange in force at the date of this Agreement or, where the context
requires, as amended, modified or reissued after the date of this Agreement.

 

    	 	 	 

    	 

    

 

“Applicable Laws”
means Companies Act 2006, the Financial Services and Markets Act 2000, the AIM Rules, the Nomad Rules, the City Code
on Takeovers and Mergers, the Market Abuse Regulation and the QCA Code.

 

“Articles”
means the articles of association of the Company from time to time.

 

“Associated Undertakings”
means, (1) in relation to a company, a subsidiary undertaking or parent undertaking of such company, any other company over which
such company or any parent undertaking of such company has Control or any company whose board of directors are accustomed to act
in accordance with the directions or instructions of the relevant company; and (2) in relation to any individual means that individual’s
close relatives (as defined in the City Code on Takeovers and Mergers) and their associates (as detailed in the AIM Rules definition
of a “related party” as applicable to persons).

 

“Board” means
the board of directors of the Company or a duly authorised committee thereof.

 

“Business Day”
means any day other than a Saturday, Sunday or public holiday in England.

 

“Capital Raising“
has the meaning given to it in the Recitals.

 

"CMS Concert Party Member"
means each of the persons listed in the Schedule to this Agreement and together, the “CMS Concert Party".

 

"CMS" means
CMS Medical Venture Investment (HK) Ltd.

 

“Control”
means, in relation to any Undertaking, for the purposes of this Agreement only, the right directly or indirectly to (i) control
the exercise of 50% or more of the Voting Rights or (ii) control (by way of the exercise of Voting Rights or otherwise) the appointment
or removal of a majority of the board of directors of the relevant Undertaking.

 

“Directors”
means the directors of the Company at the date of this Agreement or, where the context requires, in office from time to time.

 

“Effective Date”
means the date of Admission.

 

“Group” means,
in relation to a company, the company and its subsidiary undertakings from time to time, any parent undertaking of the company
for the time being and any subsidiary undertakings of any such parent undertaking.

 

“Independent Director”
means any person appointed as Director from time to time (other than the A&B (HK) Director) who is considered by the Board
to be independent for the purposes of any corporate governance regime complied with by the Company and shall include the chair
of the Board provided he or she was considered by the Board to be independent upon appointment.

 

“London Stock Exchange”
means London Stock Exchange plc.

 

“Market Abuse Regulation”
means the Market Abuse Regulation (EU 596/2014).

 

“Minimum Shareholding”
means 10% of the voting rights attaching to the issued share capital of the Company.

 

“New A&B (HK) Appointee”
has the meaning given to it in clause 4.3.

 

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“New Ordinary Shares”
means the new ordinary shares of £0.00005 each in the capital of the Company to be issued pursuant to the Capital Raising.

 

“Nomad” means
Panmure or such other nominated adviser appointed by the Company from time to time.

 

“Nomad Rules”
means the AIM Rules for Nominated Advisers published by the London Stock Exchange in force from time to time.

 

“Ordinary Shares”
means the Company’s ordinary shares of £0.00005, having the rights and being subject to the restrictions set out in
the Articles as in force at the date of this Agreement.

 

“Previous A&B (HK)
Appointee” has the meaning given to it in clause 4.3.

 

“QCA Code”
means the Corporate Governance Code (2018) published by the Quoted Companies Alliance or such other corporate governance regime
complied with by the Company.

 

“Takeover Code”
means the City Code on Takeovers and Mergers.

 

“Undertaking”
means a company, body corporate, or other economic enterprise carrying on a business (whether or not for profit).

 

“Voting Rights”
means, in relation to any Undertaking the voting rights attaching to securities of the relevant Undertaking which are generally
exercisable at meetings of shareholders of the relevant Undertaking.

 

		1.2	Construction of certain references

 

In this Agreement:

 

		(a)	words and phrases, the definitions of which are contained or referred to in the Companies Act 2006,
shall be construed as having the meanings so attributed to them;

 

		(b)	references to statutory provisions shall be construed as references to those provisions and all
statutory instruments and other subordinate legislation made thereunder, as amended or re-enacted or as their application is modified
by other provisions from time to time, and shall include references to any provisions of which they are re-enactments (whether
with or without modification);

 

		(c)	references to times, unless otherwise expressly stated, are references to London times;

 

		(d)	references to “clauses” are references to clauses of this Agreement;

 

		(e)	references to the singular shall include the plural and vice versa, and references to the any gender
shall include any other gender;

 

		(f)	headings are included for convenience only and shall be disregarded in its interpretation;

 

		(g)	general words shall not be given a restrictive meaning by reason of their being preceded or followed
by words indicating a particular class of acts, matters or things, and the word “including” shall be construed without
limitation; and

 

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		(h)	“person” includes any individual, partnership, body corporate, corporation sole
or aggregate, a state or agency of a state and any unincorporated association or organisation in each case whether or not having
a separate legal personality.

 

		2	Conditionality and duration

 

		2.1	Condition

 

This Agreement and the obligations
of the parties hereto, are conditional upon Admission occurring on or before 28 February 2019, or such later date as the Nomad
and the Company may agree. If this condition is not satisfied by such date as specified or agreed this Agreement will automatically
terminate and be of no further force or effect.

 

		2.2	Duration

 

Subject to clause 2.1, this
Agreement shall continue from the Effective Date until the earlier to occur of:

 

		(a)	the Company ceasing to be admitted to trading on AIM or a recognised stock exchange; or

 

		(b)	the CMS Concert Party and its Associated Undertakings ceasing to hold, in aggregate, the Minimum
Shareholding and remaining below the Minimum Shareholding for a continuous period of 90 days, or

 

		(c)	in respect of any CMS Concert Party Member, that person ceasing to hold any shares carrying voting
rights in the capital of the Company,

 

whereupon this Agreement shall
terminate automatically with immediate effect, in respect of the Contracting CMS Concert Party or any Contracting CMS Concert Party
Member (as the case may be) without prejudice to any rights and obligations that have accrued under it prior to termination, or
it is terminated in accordance with clause 2.3.

 

In the event that in the two
year period following termination of this Agreement, the Company remains admitted to trading on AIM and the CMS Concert Party and
its Associated Undertakings hold in excess of the Minimum Shareholding, then any Contracting CMS Concert Party Member who holds
shares carrying voting rights in the capital of the Company shall enter into a new relationship agreement on substantially the
same terms of this Agreement.

 

		2.3	Termination

 

This Agreement shall also cease
and determine with immediate effect and without any action on the part of any of the Parties hereto in the event that:

 

		(a)	the Company passes a resolution for its winding up or a court of competent jurisdiction making
an order for the Company’s winding up or dissolution;

 

		(b)	an administration order is made in relation to the Company or the appointment of a receiver over,
or an encumbrancer taking possession of or selling, an asset of the Company; or

 

		(c)	the Company makes an arrangement or composition with its creditors generally or makes an application
to a court of competent jurisdiction for protection from its creditors generally.

 

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Such termination will be without
prejudice to any rights and obligations that have accrued under it prior to termination.

 

		3	CMS Concert Party obligations

 

		3.1	For the purpose of this Agreement, Mr Lam Kong hereby undertakes to the Company and the Nomad that
he shall procure the prompt observance and performance by China Medical System Holdings Limited of all the obligations and undertakings
imposed on China Medical System Holdings Limited hereunder as if it were a Contracting CMS Concert Party Member and references
throughout this Agreement to a Contracting CMS Concert Party Member shall mean and be deemed to include Mr Lam Kong procuring such
matter or obligation by China Medial System Holdings Limited under this Agreement.

 

		3.2	Independence of the Company

 

During the term of this Agreement
each Contracting CMS Concert Party Member severally undertakes to the Company and to the Nomad to procure (so far as it is able
with respect to its Associated Undertakings) that:

 

		(a)	it shall not take any action that is intended to prevent the Board from operating independently
of the CMS Concert Party and its Associated Undertakings;

 

		(b)	subject to clause 3.1(a), it will not take any action that
would have the effect of preventing or might reasonably be expected to prevent any member of the Company’s Group from complying
with its obligations under any of the Applicable Laws including, without limitation, AIM Rule 13;

 

		(c)	any transactions and dealings between the Company and the CMS Concert Party or any of its Associated
Undertakings are effected on arm’s length terms and on a normal commercial basis;

 

		(d)	the CMS Concert Party and its Associated Undertakings will exercise their Voting Rights in the
Company (if any) so as to ensure (so far as they are reasonably able) that:

 

		(i)	the terms of this Agreement are implemented in full;

 

		(ii)	the CMS Concert Party and its Associated Undertakings perform and comply with their obligations
under this Agreement and the Articles;

 

		(iii)	no variations are made to any provision of the Articles that it knows (or might reasonably expect)
would be contrary to the terms of this Agreement or which it knows (or might reasonably expect) would otherwise have an impact
on the Company’s ability to operate independently from the CMS Concert Party and any of its Associated Undertakings;

 

		(iv)	the Board shall be at all times comprised of at least two Independent Directors; and

 

		(v)	the composition of the Board and the audit, nomination and remuneration committees of the Board
is in compliance with the corporate governance regime adopted by the Company from time to time.

 

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		(e)	Without limitation to their obligations under clause 3.1(d):

 

		(i)	neither the CMS Concert Party Members nor any of their Associated Undertakings will exercise any
of their Voting Rights in the Company or be counted in any quorum at any meeting of the Company; and

 

		(ii)	the A&B (HK) Director will not vote or be counted in any quorum at any meeting of the Board
(or any committee thereof),

 

in each case, in relation to:

 

		(A)	any actual or proposed transaction, agreement or arrangement between the Company and any member
of the CMS Concert Party Group (including as to the amendment, enforcement or implementation of the same);

 

		(B)	any matter in which any member of the CMS Concert Party Group or any Associated Undertaking thereof
is interested; or

 

		(C)	any decision by the Company concerning the enforcement of its rights under, and the operation of,
this Agreement, or any revisions or amendments to this Agreement

 

and it is acknowledged and agreed
that such matters referred to in (A), (B) and (C) above shall (i) be dealt with on behalf of the Company by a committee of the
Board comprising the Independent Directors and (ii) shall be assessed by the Nomad for the purposes of the AIM Rules in relation
to Related Party Transactions (being Rule 13 of the AIM Rules as at the date of this Agreement) prior to any approval.

 

		(f)	the CMS Concert Party Members and their Associated Undertakings will not undertake any activity
in violation of the terms of this Agreement;

 

		(g)	the CMS Concert Party Members and their Associated Undertakings will not seek to frustrate or prevent
any takeover offer being made for the Company pursuant to the Takeover Code;

 

		(h)	the CMS Concert Party Members and their Associated Undertakings will not exercise their Voting
Rights to call a general meeting of the Company to propose a resolution to:

 

		(i)	de-list the Company from AIM (unless such delisting is supported by a majority of the Company’s
independent shareholders (as evidenced by the delivery of proxies or other written confirmation in relation to a proposed delisting)
or in circumstances where such resolution is being proposed in connection with (i) an offer by a bona fide third party to acquire
the entire issued share capital of the Company or (ii) a recommended offer by CMS and/or the CMS Concert Party Members and/or their
Associated Undertakings to acquire the entire issued share capital of the Company (excluding any shares already held by CMS and/or
the CMS Concert Party Members (and/or any of their Associated Undertakings));

 

		(ii)	remove an Independent Director from the Board where a replacement director, acceptable to the Nomad,
has not been identified and engaged subject only to their formal appointment.

 

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		3.3	Reappointment of Independent Directors

 

At any annual general meeting
of the Company, the CMS Concert Party Members and their Associated Undertakings undertake to exercise their Voting Rights in favour
of a resolution for the routine reappointment of any Independent Director. A routine reappointment being where such reappointment
is required to comply with the Articles, Applicable Laws or any corporate governance code applicable to the Company.

 

		3.4	CMS Concert Party voting and other rights

 

		(a)	Notwithstanding any other provision of this Agreement, the CMS Concert Party Members and their
Associated Undertakings shall have the right to exercise their Voting Rights in respect of any proposed resolution to amend the
Articles in circumstances where such amendments are not inconsistent with the terms of this Agreement.

 

		(b)	Notwithstanding any other provision of this Agreement, nothing in this Agreement is intended to,
or shall prevent CMS Concert Party Members or any of their Associated Undertakings from:

 

		(i)	exercising the rights attaching to its or their Ordinary Shares as it or they see fit in its or
their absolute discretion (save as expressly prohibited in this Agreement); or

 

		(ii)	acquiring or disposing of any securities of the Company (save to the extent otherwise required
by law or regulation).

 

		3.5	Adjudication of Disputes

 

Any disputes
between any CMS Concert Party Member and the Company relating to either the management of the Company, the operation of the Board
of Directors or any transaction, agreement or arrangement referred to in clause 3.1(b) shall be passed to, and dealt with on behalf
of the Company by, a committee comprising only of the Independent Directors following consultation with the Nomad. Notwithstanding
this clause 3.5, such action shall not preclude any party from bringing a claim in accordance with clause 11.2.

 

		3.6	Takeover Code

 

The CMS Concert
Party acknowledge their position under the Takeover Code and in particular that the following matter which requires the prior consultation
with and clearance of the Panel otherwise the relevant member of the CMS Concert Party may be required to make a general offer
to all the remaining Shareholders of the Company to acquire their shares:-

 

		(a)	the acquisition by a single member of the CMS Concert Party of an interest in shares in the Company
(including by way of a transfer of such shares from another member of the CMS Concert Party) sufficient to increase that persons
holding to 30 per cent. or more of the Company’s voting rights, or if he already holds more than 30 per cent. but less than
50 per cent. an acquisition which increases his shareholdings in the Company.

 

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		4	Appointment of the A&B (HK) Director

 

		4.1	A&B (HK) shall have the right to appoint one Director to the Board (the "A&B (HK)
Director") for so long as (i) the Company's Ordinary Shares are admitted to trading on AIM; and/or (ii) A&B (HK) will
only be entitled to exercise this right at any time when it holds as beneficial owner at least the Minimum Shareholding.

 

		4.2	The Company shall procure that the A&B (HK) Initial Director shall be appointed as a non- executive
Director conditional upon Admission in accordance with the terms of his letter of appointment in a form agreed with A&B (HK).

 

		4.3	Substitution

 

Subject to
clause 4.1, A&B (HK) may by notice given to the Company at any time request that a person (a "New A&B (HK) Appointee")
be appointed as a non-executive Director in place of any person previously appointed as the A&B (HK) Director (a "Previous
A&B (HK) Appointee"), subject to the Nomad being satisfied as to the suitability of such New A&B (HK) Appointee
in accordance with the Nomad Rules (provided the Company's Ordinary Shares are at the relevant time admitted to trading on AIM)
and, subject to A&B (HK) procuring the resignation of the Previous A&B (HK) Appointee (unless s/he shall have already ceased
to hold office) without any compensation being payable by the Company to such Director in respect of such cessation of office and
with a full waiver of all and any claims such director may have against the Company (excluding for the avoidance of doubt any accrued
but unpaid fees and expenses which have not been reimbursed at the relevant time) and the Company shall thereupon procure that
the New A&B (HK) Appointee is appointed as a non-executive Director and the New A&B (HK) Appointee will enter into an individual
letter of appointment on substantially similar terms to the Previous A&B (HK) Appointee (or on such other terms as CMS and
the Company may then agree following consultation with the Nomad).

 

		4.4	Maintenance in office

 

The Company
shall procure that (unless A&B (HK) otherwise requires) the A&B (HK) Director is proposed and recommended by the Board
(subject to the Directors' fiduciary duties) for re-election at the first annual general meeting of the Company after his appointment
and at each subsequent annual general meeting of the Company at which such Director becomes liable to retire by rotation.

 

		4.5	Replacement appointee

 

In the event
that the Previous A&B (HK) Appointee ceases to hold office due to a failure to be re-elected or has been removed as a Director
at any general meeting, the New A&B (HK) Appointee shall be a person other than the Previous A&B (HK) Appointee.

 

		4.6	Conflicts of interest

 

For the avoidance
of doubt, the exercise by A&B (HK), CMS, any CMS Concert Party Member or their Associated Undertakings of their voting rights
solely for the purpose of maintaining the level of their shareholding in the Company (expressed as a percentage of the nominal
value of the ordinary (or other voting) share capital of the Company) shall not be considered to be a conflict of interest. 

 

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		5	Observer

 

For so long as A&B (HK) holds
as beneficial owner at least the Minimum Shareholding, whether or not there is on A&B (HK) Director appointed to the Board,
A&B (HK) may appoint (by notice in writing to the Company) an individual to attend meetings of the Board (an "Observer").
The Observer shall only be entitled to speak at any meetings of the Board if the A&B (HK) Director is not present and shall
not be entitled to vote at any meetings of the Board. The Observer shall be provided with all notices and, subject to any legal
or regulatory restrictions, Board materials as if he or she were a duly appointed A&B (HK) Director.

 

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		6	Warranty

 

Each of the Company and each
Contracting CMS Concert Party Member warrants to the other parties that it has all necessary power and authority to enter into
and perform its obligations under this Agreement in accordance with its terms without any sanction or consent and that this Agreement
when entered into will constitute a legally binding obligation on such party enforceable in accordance with its terms.

 

		7	Confidentiality

 

		7.1	The CMS Concert Party and the Company shall keep confidential, and shall procure that each of their
directors, officers, employees and agents (as relevant) shall keep confidential, all Confidential Information (as defined in clause
6.2) and shall not disclose the same to any other person (other than to such of its directors, senior employees or advisers (as
relevant) to the extent only that they strictly need to know the same for the proper performance of their duties and on the basis
that they are to comply with this clause 5 which each relevant party shall use their best endeavours to procure) and each relevant
party shall not make use of any Confidential Information for their own purposes, and this obligation shall continue without limit
of time and notwithstanding the termination of this Agreement or any CMS Concert Party Member and its Associated Undertakings ceasing
to hold any shares or other securities of the Company.

 

		7.2	Definition of “Confidential Information”

 

For the purpose of this clause
6 “Confidential Information” means all information of whatever kind which either party may impart or cause to
be imparted to the other party or to either of the other party’s directors, senior employees or advisers, or to CMS appointees
to the Board, which is imparted on the understanding that it is to be kept confidential, or is imparted or otherwise obtained by
any of such persons and is marked as being confidential, or however imparted or obtained, is of a nature which would be expected
to be kept confidential or by its nature is “inside information” within the meaning of the Criminal Justice Act 1993,
the Financial Services and Markets Act 2000 or the Market Abuse Regulation (“Inside Information”).

 

		7.3	Exclusions

 

The obligation in clause 6.1
shall not apply in respect of any Confidential Information which:

 

		(a)	is required to be disclosed by law;

 

		(b)	is in the lawful possession of, or was lawfully furnished to any party (as applicable) by another
person without any breach of any obligation of confidentiality; or

 

		(c)	is for the time being in the public domain, otherwise than by any breach by CMS Concert Party Members
or the Company or their respective directors, senior employees or advisers (as relevant).

 

		7.4	Price sensitive information

 

To the extent that any of the
Confidential Information is inside information (as defined in clause 6.2) each CMS Concert Party and the Company undertakes to
bring that fact to the attention of any person to whom it may disclose the same to the extent permitted by this clause 6. 

 

    	 	 	10 

    	 

    

 

		7.5	Disclosure of information to A&B (HK) and any other member of the CMS Concert Party:

 

		(a)	The A&B (HK) and any Observer Director shall be entitled to disclose information he or she
receives from the Company to A&B (HK) and any member of the CMS Concert Party and any of their Associated Undertakings and
any officer, employee or professional adviser of A&B (HK) and any member of the CMS Concert Party and any of their Associated
Undertakings who strictly need to know such information for the purpose it is being disclosed (and in accordance with the confidentiality
obligations) provided that a A&B (HK) Director or Observer may not disclose:-

 

		(i)	sensitive and confidential information relating to the Company's negotiating position in relation
to any contract, arrangement or transaction with any CMS Concert Party Member or any Associated Undertaking, the disclosure of
which would be prejudicial to the Company's position or where to do so would be a breach of a bona fide confidentiality obligation
owed by the Company or any subsidiary to a third party;

 

		(ii)	Inside Information unless in compliance with the Market Abuse Regulation and other applicable laws
and regulations. The CMS Concert Party acknowledges that such information may give rise to obligations on them under applicable
law and regulations, including, without limitation, under the Market Abuse Regulation. The CMS Concert Party further acknowledges
that for the purposes of the Market Abuse Regulation the A&B (HK) Director and Observer shall be placed on the Company's permanent
insider list as prescribed by the Market Abuse Regulation.

 

		(b)	The parties agree that the Board (acting without the A&B (HK) Director) may at any time serve
on the A&B (HK) Director and the Observer a written notice requiring the A&B (HK) Director and the Observer to cease supplying
specified information that is Inside Information to the CMS Concert Party (a "Stop Notice") in circumstances where
the supply of such Inside Information to the CMS Concert Party (i) would be contrary to applicable law or regulation or (ii) relates
to a matter affecting all shareholders of the Company and would therefore, in the opinion of the Board (acting without the A&B
(HK) Director), be inappropriate. A&B (HK) shall instruct the A&B (HK) Director and the Observer to undertake to comply
with this clause 6.5(b) and to comply with the relevant Stop Notice for so long as it is outstanding and has not been withdrawn
in writing by the Board.

 

		8	Waiver and Amendment

 

		8.1	No waiver

 

No waiver of any term, provision
or condition of this Agreement shall be effective unless such waiver is evidenced in writing and signed by the waiving party and
then only in the instance and for the purpose of which it is given.

 

		8.2	Effect of delay

 

No failure or delay on the
part of any party in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof, nor shall
any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or of any
other right, power or privilege. The rights and remedies herein provided are cumulative with and not exclusive of any rights or
remedies provided by law. 

 

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		8.3	Variation in writing

 

No variation to this Agreement
shall be effective unless made in writing and signed by all the parties and unless any such variation is previously discussed with
the Nomad.

 

		9	General

 

		9.1	Notices

 

		(a)	Any notice (which term in this clause 8.1 shall include any other communication) required to be
given under, or in connection with any matter contemplated by this Agreement, shall be in writing in the English language.

 

		(b)	Subject to clause 8.1(d) any notice shall be addressed as provided in clause 8.1(c) and:

 

		(i)	any such notice shall be delivered by hand or sent by fax transmission or pre-paid first class
post and if delivered by email shall conclusively be deemed to have been received when the recipient, by an email sent to the email
address for the sender stated in this clause 8 or by a notice delivered by another method in accordance with this clause 8, acknowledges
having received that email, with an automatic “read receipt” not constituting acknowledgment of an email for purposes
of this clause 8, and if sent by post shall conclusively be deemed to have been received three (3) Business Days after posting;
and

 

		(ii)	if any deemed receipt under clause 8.1(b)(i) occurs before 9.00 a.m. on any Business Day, the notice
shall be deemed to have been received at 9.00 a.m. on that day, and if deemed receipt occurs after 5.00 p.m. on any Business Day
or on any day which is not a Business Day, the notice shall be deemed to have been received at 9.00 a.m. on the next Business Day.

 

		(c)	The addresses and other details of the parties to this Agreement are:

 

The Company:

 

	Address:	Its registered office from time to time
	 	 
	For the attention of: 	Nick Robbins-Cherry, Chief Financial Officer 
	 	 
	Email address:	nickrc@midatechpharma.com
	 	 
	CMS:	 
	 	 
	Address: 	Its registered office from time to time
	 	 
	For the attention of: 	Dr. Peng huaizheng
	 	 
	Email address:	huaizhengpeng@cms.net.cn
	 	 
	Panmure:	 
	 	 
	Address: 	Its registered office from time to time

 

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	For the attention of: 	Freddy Crossley
	 	 
	Email address: 	freddy.crossley@parmure.com

 

The other Contracting CMS Concert
Party Members:

 

As per the Schedule.

 

		(d)	Any party to this Agreement may notify the other parties of any change to the address or any of
the other details specified in clause 7.1(c) provided that such notification shall only be effective on the date specified in such
notice or five Business Days after the notice is given whichever is the later and provided also that any new address shall be in
the United Kingdom.

 

		9.2	Time of the essence

 

Subject to clause 7.3, any time,
date or period referred to in this Agreement may be extended by mutual agreement between the parties but as regards any time, date
or period as originally fixed or so extended, time shall be of the essence.

 

		9.3	Rights cumulative and other matters

 

		(a)	It is understood and agreed by the parties that monetary damages would not be a sufficient remedy
for any breach of this Agreement and each party shall be entitled to seek injunctive relief and specific performance as a remedy
for any such breach by the other.

 

		(b)	The rights, powers and remedies provided in this Agreement are cumulative and are not exclusive
of any rights, powers or remedies provided by law or otherwise.

 

		(c)	Save as expressly provided in this Agreement, no failure to exercise nor any delay in the exercising,
by any party to this Agreement, of any right, privilege or remedy under this Agreement shall impair or operate as a waiver thereof.

 

		(d)	No single or partial exercise of any right power or remedy under this Agreement shall prevent any
further or other exercise thereof or the exercise of any other right or remedy.

 

		(e)	No time or other indulgence granted, to, or release or compromise of the liability of, any party
to this Agreement shall affect the liability of any other party to this Agreement.

 

		(f)	Each party’s liability to the other howsoever arising under or in connection with this Agreement
shall not extend to any special, indirect or consequential loss or damage whatsoever.

 

		(g)	Any liability or obligation of any party that is accrued and is not performed in full as of the
date of termination of this Agreement shall survive such termination until performed in full.

 

		9.4	Entire Agreement

 

This Agreement (from the Effective
Date) constitutes the whole agreement between the parties relating to its subject matter as at its date and supersedes and extinguishes
any prior drafts, agreements, undertakings, representations, warranties and arrangements of any nature, whether in writing or oral,
relating to such subject matter.

 

    	 	 	13 

    	 

    

 

		9.5	Contracts (Rights of Third Parties) Act 1999

 

No person who is not a party
to this Agreement other than the Nomad from time to time shall have any right under the Contracts (Rights of Third Parties) Act
1999 to enforce any term of this Agreement.

 

		9.6	Other rights

 

The provisions of this Agreement
are without prejudice to any liabilities which any of the parties may have under any law.

 

		9.7	Invalidity

 

If any provision of this Agreement
shall be held to be illegal or unenforceable, the enforceability of the remainder of this Agreement shall be unaffected.

 

		9.8	Assignment

 

This Agreement is not assignable
by any of the parties hereto.

 

		9.9	Costs

 

Except as expressly provide
in this Agreement, each party shall bear its own costs in relation to the preparation, negotiation and completion of this Agreement.

 

		9.10	No partnership

 

Nothing in this Agreement and
no action taken by the parties under this Agreement shall constitute a partnership, association, joint venture or other co-operative
entity between the parties.

 

		9.11	Further assurance

 

The parties shall from time
to time (both during the term of this Agreement and after) do or procure to be done all such acts (including exercising all voting
rights and powers (direct and indirect) available to it in relation to any person and/or the Company) and execute or procure the
execution of all such documents and things as may be reasonably necessary to give effect to the provisions of this Agreement.

 

		9.12	Overriding obligations

 

The obligations of the parties
pursuant to this Agreement shall at all times be subject to the requirements of the Articles and all relevant legal and regulatory
requirements and obligations of the parties, including under applicable companies legislation, the AIM Rules and the Market Abuse
Regulation. Each party shall act in accordance with such requirements and no party shall be required to take any action in breach
of such requirement or obligation.

 

		10	Counterparts

 

		10.1	Counterparts

 

This Agreement may be executed
in any number of counterparts and by the parties to it on separate counterparts, each of which when executed and delivered shall
be an original but all the counterparts shall together constitute one and the same document.

 

    	 	 	14 

    	 

    

 

		10.2	Delivery of counterparts

 

Delivery of an executed signature
page of a counterpart in Adobe Portable Document Format (PDF) sent by email shall take effect as delivery of an executed counterpart
of this Agreement. If either method is adopted without prejudice to the validity of such agreement, each party shall provide the
others with the original of such page as soon as reasonably practicable thereafter.

 

		11	Law and Jurisdiction

 

		11.1	English Law

 

This Agreement and all matters
arising from it (including any dispute relating to the existence, validity, or termination of this Agreement or any contractual
or non-contractual obligation) shall be governed by, and construed in accordance with, English law.

 

		11.2	Arbitration

 

		(a)	Any and all disputes, controversies and claims between the parties arising out of or in relation
to this Agreement shall be amicably and promptly settled by negotiation and consultation among them. In the event that the parties
are unable to settle such dispute, controversy or claim by negotiation and consultation within sixty (60) days, any party shall
submit the dispute to arbitration in accordance with the terms of this clause 9.2. All arbitrations shall be conducted in London,
or such other location as may be mutually agreed by the parties, and in accordance with the Rules of the London Court of International
Arbitration (the “Rules”) as administered by the London Court of International Arbitration. All disputes submitted
to arbitration shall be arbitrated in English. All decisions of the panel of arbitrators on any matter submitted for arbitration
in accordance with this Agreement shall be final and binding on the parties. Damages for which a party may be liable shall include
loss of property, out of pocket expenses and third party liability. The number of arbitrators shall be three and shall be appointed
in accordance with the Rules.

 

		(b)	The parties agree that information concerning or arising out of any arbitration, including information
concerning any arbitration award, shall be used only for the purposes of the arbitration and be treated as confidential and not
disclosed to any person other than a party without the prior consent in writing of all of the parties unless any of the exclusions
specified in clause 5.3 applies or the disclosure is to a person intended to be called as a witness in the arbitration by the party
disclosing the information, for the purpose of preparing the witness statement of such witness, provided that in any such case
a written confidentiality undertaking has first been obtained from such person. The restrictions contained in this clause 9.2(B)
shall survive the termination of this Agreement and shall continue without limit of time.

 

    	 	 	15 

    	 

    

 

SCHEDULE

The CMS Concert party members

 

 

 

	 	Name 	Address
	 	 	 
	1.	Mr Lam Kong	8F, Block B, Majialong Chuangxin Building, 198 Daxin Road, Nanshan District, Shenzhen, Guangdong Province, the PRC
	 	 	 
	2.	A&B (HK) Company Limited	Unit A, 11/F, Chung Pont Commercial Building, 300 Hennessy Road, Wanchai, Hong Kong
	 	 	 
	3.	
        China Medical System Holdings
Limited
	
        Maples Corporate Services Limited
PO Box 309 Ugland House Grand Cayman, KY1-1104 Cayman Islands

	 	 	 
	4.	China Medical Venture Investment (HK) Limited	
        Unit 2106, 21st Floor, Island
Place Tower, 510 King's Road, North Point, Hong Kong.

 

    	 	 	16 

    	 

    

 

This Agreement is executed as a deed and
is delivered and takes effect at the date written above.

 

	
        Executed as a deed by

        MIDATECH PHARMA PLC

        acting by Craig Cook, a director,
        in the

        presence of:

         

        /s/ Nick Robbins-Cherry

        Witness signature

         

        Nick Robbins Cherry

        Name

         

        Accountant

        Occupation

        _______________________

        Address

        _______________________

        

        _______________________
	
         

         

        /s/ Craig Cook

        Director

         

         

         

 

    	 	 	17 

    	 

    

 

	
        Executed as a deed by

        PANMURE GORDON (UK) LIMITED

        acting by Will Lyons, a director,
        in the

        presence of:

         

        /s/ Emma Earl

        Witness signature

         

        Emma Earl

        Name

         

        Corporate Financier

        Occupation

        _______________________

        Address

        _______________________

        

        _______________________
	
         

         

        /s/ Will Lyons

        Director

         

         

	 	 

    	 	 	18 

    	 

    

 

	
        Executed as a deed by

        MR LAM KONG

        in the presence of:

         

        /s/ Aliciya Wu

        Witness signature

         

        Aliciya Wu

        Name

         

        Company Secretary

        Occupation

        _______________________

        Address

        _______________________

        

_______________________ 
	
         

        /s/ Lam Kong

         

         

         

 

    	 	 	19 

    	 

    

 

	
        Executed as a deed by A&B
        (HK) 

        COMPANY LIMITED

        acting by MR. LAM KONG,
        a director,

        in the presence of:

         

        /s/ Aliciya Wu

        Witness signature

         

        Aliciya Wu

        Name

         

        Company Secretary

        Occupation

        _______________________

        Address

        _______________________

_______________________  
	
         

         

        /s/ Lam Kong

        Director

         

         

 

    	 	 	20 

    	 

    

 

	
        Executed as a deed by

        CHINA MEDICAL VENTURE 

        INVESTMENT (HK) LIMITED

        acting by DR. HUAIZHENG
        PENG a

        director, in the presence of:

         

         

        /s/ Sally Mao

        Witness signature

         

        Sally Mao

        Name

         

        Accountant

        Occupation

        _______________________

        Address

        _______________________

        

        _______________________

        

        

        _______________________  
	
         

         

        /s/ Dr. Huaizheng Peng

        Director

         

         

         

         

 

 

21Exhibit 4.19

 

PRIVATE AND CONFIDENTIAL

 

 

Midatech Pharma plc

65 Innovation Drive, Milton Park

Milton

Abingdon

Oxfordshire

OX14 4RQ

 

29 January 2019

 

 

A&B (HK) Company Limited 

Unit A, 11/F, Chung Pont Commercial Building,

300 Hennessy Road, Wanchai,

Hong Kong

	Subscriber commitment confirmation
	Number of Subscription Units	103,896,103
	Number of Subscription Shares	103,896,103
	Number of Warrants	103,896,103
	Subscription Price per Unit	3.85 pence
	Total Subscription Price	£3,999,999.97

 

Dear Subscriber

 

Subscription Letter in relation to Midatech
Pharma plc (the “Company”)

 

We refer to the offer made to certain prospective
investors to subscribe for units comprising one ordinary share of 0.005 pence each in the share capital of the Company (the “Subscription
Share(s)”) and one warrant to purchase a new ordinary share in the share capital of the Company (“Warrant”)
pursuant to the terms of a warrant instrument adopted by the Company (collectively “Subscription Unit(s)”) and
such fundraising being (the “Subscription”).

 

By executing and returning the attached
Confirmation Letter, you:

 

		1.	agree as a legally binding obligation to subscribe for the number of Subscription Units at the
Subscription Price, each as shown in the ‘Subscriber commitment confirmation’ above, on the terms set out in this letter,
the attached Confirmation Letter and subject to the articles of association of the Company from time to time;

		2.	give the various warranties, confirmations, representations, acknowledgements and undertakings
set out below; and

		3.	confirm that you are not relying on any warranty or representation made by the Company or any of
its representatives or any other party.

 

The Subscription Shares to be issued pursuant
to the Subscription will rank pari passu in all respects with the existing ordinary shares of 0.005 pence each in the share
capital of the Company.

 

The Subscription is conditional, among
other things, upon Admission (defined below).

 

In this letter, any reference to any provision
of any legislation shall include any amendment, modification, re-enactment or extension thereof.

 

    	 	 	 

     

    

 

		1.	Dealings

 

		1.1	Application will be made to the London Stock Exchange plc for all of the new ordinary shares in
the Company (to be issued in connection with the Subscription) (the “New Ordinary Shares”) to be admitted to
trading on AIM (“Admission”). It is expected that Admission will become effective, and that dealings in the
New Ordinary Shares will commence by no later than 28 February 2019.

 

 

		2.	Conditions and Termination

 

The
obligations accepted by you pursuant to your signature and return of the Confirmation Letter and set out in this letter are irrevocable
and not capable of termination or rescission by you in any circumstances, except in the case of fraud.

 

		3.	Settlement

 

		3.1	Payment of an amount equal to the value of the Total Subscription Price shown in the ‘Subscriber
commitment confirmation’ shall be wired to the escrow account detailed below (“Escrow Account”). The Subscription
Monies are held in the Escrow Account on trust by Link Corporate Trustees (UK) Limited as the “Escrow Agent”
until Admission on the terms and conditions of an escrow agreement dated on or around the date of this letter (the “Escrow
Agreement”).

 

Escrow Account
details:

 

Name: 

Client Account Sort Code: 

Account Number: 

IBAN: 

SWIFT/BIC: 

 

		3.2	Pursuant to the terms of the Escrow Agreement:

 

		(a)	if Admission occurs, the Total Subscription Price will be released to us upon Admission taking
place; and

 

		(b)	if Admission does not occur on or prior to 28 February 2019 we agree that any Subscription monies
paid by you will be returned to you.

 

		3.3	Subject to (i) the terms and conditions of this letter and (ii) Admission occurring, we will deliver
your Subscription Shares in accordance with the certificated settlement details provided in Attachment B.

 

		3.4	In the event of late receipt of the Total Subscription Price, you will be charged interest on the
amount thereof from time to time outstanding at the rate of 2 percentage points above the Bank of England base rate from time to
time, calculated on a daily basis.

 

    	 	 	 

     

    

 

		4.	Registration

 

The person
named for registration purposes in Attachment B must be (a) the person procured by you to subscribe for or acquire the relevant
Subscription Shares, (b) yourself or (c) a nominee of any such person or yourself, as the case may be. The ISIN for the Subscription
Shares is GB00BRTL9B63.

 

		5.	Further Terms

 

		5.1	By returning the attached Confirmation Letter duly completed and thereby accepting your Subscription
Shares you will be deemed to have agreed, warranted, confirmed, represented, acknowledged and undertaken to us in the following
terms (the “Confirmations”) (in respect of yourself and/or any other person on whose behalf you are subscribing
– and “you”, where referred to below, shall be interpreted accordingly) and your Subscription is conditional
on such Confirmations being and remaining true and accurate at all times up to and including the completion of your Subscription:

 

		(a)	Your acceptance of your Subscription on the terms set out in this letter is irrevocable and not
capable of termination or rescission by you in any circumstances, except in the case of fraud.

 

		(b)	You confirm and warrant that you have not relied on any information given or any written or oral
representations, warranties, or statements express or implied statutory or otherwise made or deemed to be made at any time by the
Company, or any person in connection with the Subscription, Admission or the Company other than the marketing presentation dated
26 November 2018 (the “Marketing Presentation”) provided to you in connection with the Subscription and, accordingly,
there shall be no liability or responsibility for the Company, Panmure Gordon (UK) Limited or Stifel Nicolaus Europe Limited (the
“Placing Agents”) and their respective directors, officers, agents, employees or advisers or for any other third
party for any other information or representation, except in the case of fraud. You acknowledge that neither the Placing Agents
nor any person representing the Placing Agents makes any representation or warranty as to the accuracy or completeness of the Marketing
Presentation.

 

		(c)	You (including any person on whose behalf you are subscribing) are a person of a kind described
in Article 19(5) (investment professionals) or Article 49 (high net worth companies, unincorporated associations etc.) of the Financial
Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Financial Promotion Order”) or you are
otherwise entitled by law to receive communications which are a “financial promotion” (as referred to in section 21
of the Financial Services and Markets Act 2000 (“FSMA”)) without the need for such communications to be approved,
made or directed by an “authorised person” as referred to in FSMA and you undertake to provide us with such information
as we may require to verify your ability to receive financial promotions in those circumstances.

 

		(d)	The agreement confirmed by this letter (and your signature and return to us of the attached Confirmation
Letter) is a legally binding contract. The terms and conditions of your Subscription will be governed by, and construed in accordance
with, the laws of England and Wales and the Courts of England will have exclusive jurisdiction to settle any disputes which may
arise out of or in connection with the same but a judgment or order of any court may be enforced in any court of competent jurisdiction.

 

    	 	 	 

     

    

 

		(e)	You irrevocably appoint any director or employee of the Company as your agent for the purpose of
executing and delivering to the Company and/or its registrars any document on your behalf necessary to enable you to be registered
as the holder of your Subscription Shares.

 

		(f)	You are entitled to accept your Subscription under the laws of all relevant jurisdictions which
apply to you, have complied and will fully comply with all such laws in relation to your Subscription (including, where applicable,
the Money Laundering Regulations 2007 (as amended), the Anti-terrorism, Crime and Security Act 2001, the Criminal Justice Act 1993
and the Proceeds of Crime Act 2002 (together, the “Money Laundering Regulations”)) and, if you are making payment
on behalf of a third party, you have obtained and recorded satisfactory evidence to verify the identity of the third party as required
by the Money Laundering Regulations and you will provide the Company on demand with any information or documentation it might require
for the purposes of verification pursuant to the Money Laundering Regulations (“Information”), and you have
obtained all governmental and other consents which may be required in relation to your Subscription. If within a reasonable time
after a request for Information, we have not received Information satisfactory to us, we may, at our absolute discretion, terminate
your Subscription in which event the monies payable by you pursuant to the paragraph headed ‘Settlement’ will, if paid,
be returned without interest to the account of the drawee bank from which they were originally debited.

 

		(g)	Time shall be of the essence as regards obligations pursuant to this letter.

 

		(h)	In accepting your Subscription Shares you are acting as principal and for no other person and that
your acceptance of that commitment will not give any other person a contractual right to require the issue by the Company of any
of the Subscription Shares.

 

		(i)	You (the “Subscriber”) acknowledge, undertake, represent, warrant, confirm and
agree (as the case may be):

 

		(i)	that the Subscriber:

 

		(A)	in making its decision to purchase the Subscription Shares: (a) has made its own independent and
informed investment decision regarding the Subscription Shares based on its own knowledge (and information which it may have or
which is publicly available) and the Marketing Presentation, with respect to the Subscription Shares and the Company; (b) has had
access to such information as it deems necessary or appropriate in connection with its purchase of the Subscription Shares; (c)
has had a full opportunity to ask questions of and receive answers from the Company or any person or persons acting on behalf of
the Company concerning the terms and conditions of the offering of the Subscription Shares and the merits and risks of investing
in the Subscription Shares; and (d) has sufficient knowledge and experience in financial and business matters and expertise in
assessing credit, market and all other relevant risk and is capable of evaluating, and has evaluated, independently the merits,
risks and suitability of subscribing for the Subscription Shares for itself;

 

    	 	 	 

     

    

 

		(B)	is a sophisticated investor and acknowledges that by its subscription for or holding of the Subscription
Shares that it is capable of bearing the economic risk of loss of investment that may occur with respect to acquiring the Subscription
Units, including the possibility that the Subscriber may lose all or a substantial portion of its investment in the Subscription
Shares, and the Subscriber will not look to the Company or to any other person acting on its behalf for all or part of any such
loss or losses that it may suffer.

 

		(j)	You are entitled to take up your Subscription Shares and you have fully observed the laws of all
relevant jurisdictions, obtained all governmental and other consents which may be required thereunder and complied with all relevant
formalities and that you have not taken any action which will or may result in the Company, its respective directors, officers,
agents, employees or advisers being in breach of the regulatory requirements of any territory in connection with the Subscription
or your acceptance of your Subscription Shares.

 

		(i)	You have full knowledge of, or have been independently advised as to, the applicable securities
laws of the jurisdiction in which you are resident and the jurisdiction from which you are subscribing for the Subscription Shares
(the “Jurisdictions”).

 

		(ii)	Applicable securities laws of the Jurisdictions do not require the Company to make any filings
or seek any approvals of any kind whatsoever from any regulatory authority of any kind in such Jurisdictions in connection with
the offering to you of or subscription by you for the Subscription Shares.

 

		(iii)	You confirm that the offering to you or the subscription by you of the Subscription Shares does
not trigger in the Jurisdictions: (i) any obligation to prepare and file a prospectus or similar document, or any other report
with respect to such purchase; (ii) any continuous disclosure reporting obligation of the Company; or (iii) any registration or
other obligation on the part of the Company.

 

		(k)	You have the power and capacity to enter into, and will perform, your obligations under the conditions
of this letter, and have obtained all necessary consents and authorities which may be required in relation to this letter and your
Subscription.

 

		(l)	Whilst no stamp duty or stamp duty reserve tax may be payable pursuant to the issue to you of the
Subscription Shares, if any liability to stamp duty or stamp duty reserve tax does arise, it will be entirely for your account
and the Company will not have any liability in respect of any duty or any related costs, fines, penalties and interest arising
in respect thereof.

 

    	 	 	 

     

    

 

		(m)	You have not taken any action which will or might result in the Company being in breach of the
legal or regulatory requirements of any jurisdiction.

 

		(n)	You have read the Marketing Presentation and accept that any investment in the Company is subject
to the risk factors identified in the Marketing Presentation.

 

		(o)	You agree to indemnify and hold each of the Company and affiliates, directors, officers, employees
and agents harmless from and against any and all costs, claims, liabilities and expenses (including legal fees and expenses) arising
out of or in connection with any breach by you (or any person on whose behalf you are acting) of the representations, warranties,
acknowledgements, agreements and undertakings in this letter, save to the extent that such breach was caused by and in the reasonable
control of the Company and further agree that the provisions of this letter shall survive after completion of the Subscription.

 

The Company will rely on the truth and
accuracy of the foregoing Confirmations, and if any of the same are no longer accurate, you shall promptly notify the Company.

 

    	 	 	 

     

    

 

IMPORTANT NOTICE

 

		1.	This letter is sent to you by us on a confidential basis on the
understanding that you are either:

 

		(a)	an “authorised person” under FSMA;

 

		(b)	a person having professional experience in matters relating to investments as defined in article
19 of the Financial Promotion Order;

 

		(c)	an organisation satisfying certain minimum net worth requirements as specified in article 49 of
the Financial Promotion Order (relating to high net worth companies, unincorporated associations etc.); or

 

		(d)	otherwise entitled to receive it by law,

 

each, a “Relevant
Person”,

 

and the Subscription
is only available to such relevant Persons and will only be engaged in with them. Onward transmission of this letter, may constitute
an offence under FSMA.

 

		2.	Those persons who are not Relevant Persons should not rely on
this letter and should take no action.

 

Please sign, date and complete the enclosed
Confirmation Letter (Attachment A) immediately. A scanned copy of the signed and dated Confirmation Letter should be sent
by email to Lena Hodge (lhodge@brownrudnick.com) with a copy to Craig Cook (craig.cook@midatechpharma.com) immediately, with the
original copy to follow by first class post (or, if sent from abroad, airmail or international courier) to Midatech Pharma plc
c/o Brown Rudnick LLP, 8 Clifford Street, London W1S 2LQ for the attention of Lena Hodge.

 

In addition, please complete, sign and
date the enclosed Registration and Delivery Details Form (Attachment B). A scanned copy of the Registration and Delivery
Details Form should be sent by email to Lena Hodge (lhodge@brownrudnick.com) with a copy to Craig Cook (craig.cook@midatechpharma.com)
so as to arrive no later than 12 p.m. (noon) on the date following the date of this letter.

 

    	 	 	 

     

    

 

Yours faithfully

 

 

 

 

/s/ Craig Cook

 

Craig Cook, Chief Executive Officer

 

for and on behalf of

Midatech Pharma plc

 

    	 	 	 

     

    

 

ATTACHMENT A

 

Confirmation Letter

 

THIS LETTER MUST BE COMPLETED AND RETURNED
BY EMAIL IMMEDIATELY TO LHODGE@BROWNRUDNICK.COM (COPY TO CRAIG.COOK@MIDATECH.COM), BUT IN ANY EVENT BY NOT LATER THAN 12 P.M. (NOON)
ON THE DATE FOLLOWING THE DATE OF THE SUBSCRIPTION LETTER.

 

 

Midatech Pharma plc

c/o Brown Rudnick LLP

8 Clifford Street

London W1S 2LQ

 

	Subscriber commitment confirmation
	Number of Subscription Units	103,896,103
	Number of Subscription Shares	103,896,103
	Number of Warrants	103,896,103
	Subscription Price per Unit	3.85 pence
	Total Subscription Price	£3,999,999.97

 

 

Dear Sirs

 

Confirmation Letter in relation to Midatech
Pharma plc (the “Company”)

 

With reference to your letter dated 29
January 2019 (the “Subscription Letter”) and on the terms set out therein, we confirm, subject only to Admission,
our irrevocable acceptance of our Subscription Shares at the Subscription Price, each as shown in the ‘Subscriber commitment
confirmation’ above, on the terms set out in the Subscription Letter and the articles of association of the Company from
time to time. Unless the context requires otherwise, terms defined in the Subscription Letter have the same meaning in this Confirmation
Letter.

 

By signing and returning this Confirmation
Letter we irrevocably agree to be bound by the terms and conditions and we give the confirmations, warranties, representations,
acknowledgements and undertakings contained in the Subscription Letter. We understand that our obligations are not capable of termination
by us in any circumstance (except fraud). We acknowledge that, in the event of late payment or all or part of the Total Subscription
Price, we will be charged interest as specified in the Subscription Letter.

 

We undertake to provide registration details
in respect of our Subscription by completing and returning to you Attachment B to the Subscription Letter by 12 p.m. (noon)
on the date following the date of this confirmation letter.

 

    	 	 	 

     

    

 

Yours faithfully

 

	/s/ Lam Kong
                                 

Signed

         

        LAM KONG

        Name of signatory (BLOCK CAPITALS)

         

         

        A&B (HK) COMPANY LIMITED

        Name of subscriber if different from signatory

        (BLOCK CAPITALS)
	 	
        29 January 2019

        Date

        Signed at the following address:

         

        8F, Block B, Majialong Chuangxin Building,

        No. 198 Daxin Road, Nanshan District,

        Shenzen,
        P.R.C.

        

        

        

         

 

    	 	 	 

     

    

  

ATTACHMENT B

 

Registration and Delivery
Details Form

 

THIS FORM MUST BE COMPLETED AND RETURNED
BY EMAIL IMMEDIATELY TO LHODGE@BROWNRUDNICK.COM FOR ATTENTION OF LENA HODGE (COPY TO CRAIG.COOK@MIDATECHPHARMA.COM FOR THE ATTENTION
OF CRAIG COOK), BUT IN ANY EVENT BY NOT LATER THAN 12 P.M. (NOON) ON THE DATE FOLLOWING THE DATE OF THE CONFIRMATION LETTER.

 

	Registration Details (and name of the legal or natural person to whom any definitive share certificate should be issued)	A&B (HK) Company Limited
	
        Delivery Instructions for certificates

         

        OR

         

        CREST ID:

         

        Account:

         
	
         

         

        Unit A, 11/F, Chung Pont Commercial Building,

        300 Hennessy Road, Wanchai,

        Hong Kong

         

         

         

         

	Person to be contacted in connection with settlement arrangements/registration	Mr. Lam Kong
	Telephone/extension no.	 

 

 

 

 

	/s/ Lam Kong

        Signed

         

        LAM KONG

        Name of signatory (BLOCK CAPITALS)

         

         

        A&B (HK) COMPANY LIMITED

        Name of subscriber if different from signatory
        (BLOCK CAPITALS)

         
	
        29 January 2019

Date

         

 

Please note: It is expected that definitive
share certificates will be despatched to you at your risk as soon as practicable after Admission. Pending such despatch, transfers
of Ordinary Shares will be certified against the register.

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