Document:

Exhibit 4.2

 

NEITHER THIS SECURITY NOR THE SECURITIES
FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD, PLEDGED, OR OTHERWISE DISTRIBUTED OR TRANSFERRED EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AND IN EACH CASE,
THE COMPANY AND DEPOSITARY HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO EACH OF THEM THAT SUCH TRANSACTION DOES
NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT.

 

PLACEMENT AGENT WARRANT TO PURCHASE ORDINARY
SHARES 

REPRESENTED BY AMERICAN DEPOSITARY SHARES

 

midatech
pharma plc

 

	Warrant ADSs: ______	Initial Exercise Date: May 20, 2020

 

THIS PLACEMENT
AGENT WARRANT TO PURCHASE ORDINARY SHARES REPRESENTED BY AMERICAN DEPOSITARY SHARES (the “Warrant”)
certifies that, for value received, _____________ or its assigns (the “Holder”) is entitled, upon the
terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date
set forth above (the “Initial Exercise Date”) and on or prior to 5:00 p.m. (New York City time) on May 18,
2025 (the “Termination Date”) but not thereafter, to subscribe for and purchase from Midatech Pharma PLC,
a public limited company organized under the laws of England and Wales (the “Company”), up to ______
Ordinary Shares (the “Warrant Shares”) represented by American Depositary Shares
(“ADSs”), as subject to adjustment hereunder (the “Warrant ADSs”). The purchase price
of one Warrant ADS under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b). This Warrant is being
issued pursuant to that certain engagement letter, dated as of February 28, 2020, by and between the Company and H.C.
Wainwright & Co., LLC.

 

Section 1.        Definitions.
Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase
Agreement (the “Purchase Agreement”), dated May 18, 2020, among the Company and the purchasers signatory thereto.

 

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Section 2.         Exercise.

 

a)       Exercise
of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times
on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed facsimile
copy or PDF copy submitted by e-mail (or e-mail attachment) of the Notice of Exercise in the form annexed hereto (the “Notice
of Exercise”). Within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard
Settlement Period (as defined in Section 2(d)(i) herein) following the date of exercise as aforesaid, the Holder shall deliver
to the Company the aggregate Exercise Price for the Warrant ADSs thereby purchased and specified in the applicable Notice of Exercise
by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified in Section
2(c) below is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any
medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding anything
herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has
purchased all of the Warrant ADSs available hereunder and the Warrant has been exercised in full, in which case, the Holder shall
surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date on which the final Notice of Exercise
is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant
ADSs available hereunder shall have the effect of lowering the outstanding number of Warrant ADSs purchasable hereunder in an amount
equal to the applicable number of Warrant ADSs purchased. The Holder and the Company shall maintain records showing the number
of Warrant ADSs purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within
one (1) Business Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and
agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant ADSs hereunder, the
number of Warrant ADSs available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

b)       Exercise
Price. Subject to Section 2(c) hereof, the exercise price per ADS under this Warrant shall be $2.0625, subject to adjustment
hereunder (the “Exercise Price”).

 

c)       Cashless
Exercise. If at the time of exercise hereof there is no effective registration statement registering with a current prospectus
available for the resale of the Warrant ADSs by the Holder, then this Warrant may (if permitted by applicable law and the Company’s
articles of association) also be exercised, in whole or in part, at such time by means of a “cashless exercise” in
which the Holder shall be entitled to receive a number of Warrant ADSs equal to the quotient obtained by dividing [(A-B) (X)] by
(A), where:

 

(A) = as applicable:
(i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise
is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and
delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined
in Rule 600(b)(68) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the option of
the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise or (z) the
Bid Price of the ADSs on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder’s execution
of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours” on a Trading
Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular trading hours”
on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date
of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a)
hereof after the close of “regular trading hours” on such Trading Day;

 

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(B) =    the
Exercise Price of this Warrant, as adjusted hereunder; and

 

(X) =
   the number of Warrant ADSs that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if
such exercise were by means of a cash exercise rather than a cashless exercise.

 

If
Warrant ADSs are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9)
of the Securities Act, the Warrant ADSs shall take on the characteristics of the Warrants being exercised, and the holding period
of the Warrant ADSs being issued may be tacked on to the holding period of this Warrant.  The Company agrees not to take
any position contrary to this Section 2(c).

 

“Bid
Price” means, for any date, the price determined by the first of the following clauses that applies: (a) if the ADSs
are then listed or quoted on a Trading Market, the bid price of the ADSs for the time in question (or the nearest preceding date)
on the Trading Market on which the ADSs are then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30
a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a Trading Market, the volume weighted
average price of the ADSs for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the ADSs are not
then listed or quoted for trading on OTCQB or OTCQX and if prices for the ADSs are then reported in The Pink Open Market (or a
similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the ADSs
so reported, or (d) in all other cases, the fair market value of an ADS as determined by an independent appraiser selected
in good faith by the Holders of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company,
the fees and expenses of which shall be paid by the Company.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the ADS are then listed or
quoted on a Trading Market, the daily volume weighted average price of the ADSs for such date (or the nearest preceding date) on
the Trading Market on which the ADSs are then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30
a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a Trading Market, the volume weighted
average price of the ADSs for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the ADSs are not
then listed or quoted for trading on OTCQB or OTCQX and if prices for the ADSs are then reported in The Pink Open Market published
by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent
bid price per ADS so reported, or (d) in all other cases, the fair market value of an ADS as determined by an independent
appraiser selected in good faith by the Holders of a majority in interest of the Securities then outstanding and reasonably acceptable
to the Company, the fees and expenses of which shall be paid by the Company.

 

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Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise pursuant
to this Section 2(c).

 

		d)	Mechanics of Exercise.

 

i.       Delivery
of Warrant ADSs Upon Exercise. The Company shall deposit the Warrant Shares subject to such exercise with Deutsche Bank Trust
Company Americas, the Depositary for the ADSs (the “Depositary”) and instruct the Depositary to credit the account
of the Holder’s in book entry format at American Stock Transfer and Trust bearing the restrictive legend in Section 5. If
eligible the Depositary may credit the Holder’s broker with The Depository Trust Company through its Deposit/Withdrawal At
Custodian system (“DWAC”) if the Depositary is then a participant in such system and either (A) there is an
effective registration statement with a current prospectus registering for resale of the Warrant Shares represented by the Warrant
ADSs by the Holder or (B) the Warrant Shares represented by the Warrant ADSs are eligible for resale by the Holder without the
current information requirements, or the volume or manner-of-sale limitations pursuant to Rule 144 or (C) the Warrant ADSs have
been sold by the Holder prior to the Warrant ADS Delivery Date (as defined below), and otherwise by electronic (registered in book-entry
format) or physical delivery to the address specified by the Holder in the Notice of Exercise, in each case (provided that the
whole Exercise Price payable has been received by the Company) by the date that is two (2) Trading Days after the delivery to the
Company of the Notice of Exercise (such date, the “Warrant ADS Delivery Date”). If the Warrant ADSs can be delivered
via DWAC, then in addition to the delivery of the Warrant Shares to the Depositary, within one (1) Trading Day of the applicable
exercise, the Depositary shall have received from the Company any legal opinions, instructions, representations from Holders or
other documentation required by the Depositary to deliver such ADSs without a restrictive legend)and, if applicable and requested
by the Company prior to the Warrant ADS Delivery Date, the Depositary shall have received from the Holder a confirmation of sale
of the Warrant ADSs. The Holder (or other person named in the Notice of Exercise as recipient of the Warrant ADSs) shall be treated
by the Company as if it were the beneficial owner of the Warrant Shares represented by the Warrant ADSs subject to a Notice of
Exercise for all purposes, as of the date the Warrant has been exercised, with payment to the Company of the applicable Exercise
Price and all taxes required to be paid by the Holder, if any, pursuant to Section 2(d)(vi) prior to the issuance of such Warrant
ADSs having been made. If the Company fails for any reason to deliver to the Holder the Warrant ADSs subject to a Notice of Exercise
by the Warrant ADS Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for
each $2,000 of Warrant Shares subject to such exercise (based on the VWAP of the ADSs on the date of the applicable Notice of Exercise),
$10 per Trading Day (increasing to $20 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue)
for each Trading Day after such Warrant ADS Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise.
The Company agrees to maintain a depositary and transfer agent (if applicable) that is a participant in the FAST program so long
as this Warrant remains outstanding and exercisable. As used herein, “Standard Settlement Period” means the
standard settlement period, expressed in a number of Trading Days, on the Company’s primary Trading Market with respect to
the ADSs as in effect on the date of delivery of the Notice of Exercise.

 

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ii.       Delivery
of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder
and upon surrender of this Warrant, at the time of delivery of the Warrant ADSs, deliver to the Holder a new Warrant evidencing
the rights of the Holder to purchase the unpurchased Warrant ADSs called for by this Warrant, which new Warrant shall in all other
respects be identical with this Warrant.

 

iii.       Rescission
Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant ADSs pursuant to Section 2(d)(i)
by the Warrant ADS Delivery Date, then the Holder will have the right to rescind such exercise in respect of the untransmitted
Warrant ADSs (with the effect that the Holder’s right to acquire such Warrant ADSs pursuant to this Warrant shall be restored)
and the Company shall return to the Holder the aggregate Exercise Price paid to the Company for such Warrant ADSs.

 

iv.       Compensation
for Buy-In on Failure to Timely Deliver Warrant ADSs Upon Exercise. In addition to any other rights available to the Holder,
if the Company fails to cause the Depositary to deliver to the Holder the Warrant ADSs in accordance with the provisions of Section
2(d)(i) above pursuant to an exercise on or before the Warrant ADS Delivery Date, and if after such date the Holder is required
by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases,
ADSs to deliver in satisfaction of a sale by the Holder of the Warrant ADSs which the Holder anticipated receiving upon such exercise
(a “Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s
total purchase price (including brokerage commissions, if any) for the ADSs so purchased exceeds (y) the amount obtained by multiplying
(1) the number of Warrant ADSs that the Company failed to deliver to the Holder in connection with the exercise at issue by (2)
the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either
reinstate the portion of the Warrant in respect of the equivalent number of Warrant ADSs for which such exercise was not honored
and return any amount received by the Company in respect of the Exercise Price for those Warrant ADSs (in which case such exercise
shall be deemed rescinded) or deliver to the Holder the number of ADSs that would have been issued had the Company timely complied
with its exercise and delivery obligations hereunder. For example, if the Holder purchases ADSs having a total purchase price of
$11,000 to cover a Buy-In with respect to an attempted exercise of Warrants with an aggregate sale price giving rise to such purchase
obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000.
The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and,
upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any
other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Company’s failure to timely deliver ADSs upon exercise of the Warrant as required pursuant
to the terms hereof.

 

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v.       No
Fractional Shares or Warrant ADSs. No fractional Warrant Shares or Warrant ADSs shall be issued upon the exercise of this Warrant.
As to any fraction of an ADS which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at
its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by
the Exercise Price or round up to the next whole ADS; provided, however the fraction of an ADS shall not be rounded up to the next
whole ADS if such rounding results in the issue price being lower than the nominal value of the ADS.

 

vi.       Charges,
Taxes and Expenses. Issuance of Warrant ADSs shall be made without charge to the Holder for any issue or transfer tax or other
incidental expense in respect of the issuance of such Warrant ADSs, all of which taxes and expenses shall be paid by the Company,
and such Warrant ADSs shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided,
however, that, in the event that Warrant ADSs are to be issued in a name other than the name of the Holder, this Warrant
when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company
may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The
Company shall pay all Depositary fees required for same-day processing of any Notice of Exercise and all fees to the Depository
Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic issuance
and delivery of the Warrant ADSs. The Company shall pay all applicable fees and expenses of the Depositary in connection with the
issuance of the Warrants ADSs hereunder.

 

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vii.       Closing
of Books. The Company will not close its shareholder books or records in any manner which prevents the timely exercise of this
Warrant, pursuant to the terms hereof; provided, however, that the foregoing shall not be deemed or construed to limit any rights
of the Depositary under the terms and provisions of the deposit agreement among, inter alia, the Company and the Depositary.

 

e)       Holder’s
Exercise Limitations. Notwithstanding anything to the contrary contained herein, the Company shall not effect any exercise
of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise,
to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder
(together with the Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s
Affiliates (such Persons, “Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership
Limitation (as defined below).  For purposes of the foregoing sentence, the number of Ordinary Shares beneficially owned by
the Holder and its Affiliates and Attribution Parties shall include the number of Ordinary Shares underlying such Warrant ADSs
issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of
Ordinary Shares underlying Warrant ADSs which would be issuable upon (i) exercise of the remaining, nonexercised portion of this
Warrant beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the
unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Ordinary Share
Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned
by the Holder or any of its Affiliates or Attribution Parties.  Except as set forth in the preceding sentence, for purposes
of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules
and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder
that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules
required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination
of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution
Parties) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission
of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation
to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant
is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify
or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall
be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes
of this Section 2(e), in determining the number of Ordinary Shares, a Holder may rely on the number of outstanding Ordinary Shares
as reflected in (A) the Company’s most recent annual report on Form 20-F, Report on Form 6-K or other public filings filed
with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice
by the Company or the Transfer Agent setting forth the number of Ordinary Shares outstanding.  Upon the written or oral request
of a Holder, the Company shall within one (1) Trading Day confirm orally and in writing to the Holder the number of Ordinary Shares
then outstanding.  In any case, the number of outstanding Ordinary Shares shall be determined after giving effect to the conversion
or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates or Attribution Parties since
the date as of which such number of outstanding Ordinary Shares was reported. The “Beneficial Ownership Limitation”
shall be 4.99% of the number of Ordinary Shares outstanding immediately after giving effect to the issuance of the Ordinary Shares
issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership
Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the
number of shares of the Ordinary Shares outstanding immediately after giving effect to the issuance of Ordinary Shares upon exercise
of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any increase in the Beneficial
Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company. The provisions
of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section
2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership
Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation.
The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

 

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Section 3.         Certain
Adjustments.

 

a)       Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a share dividend or otherwise
makes a distribution or distributions on shares of its ADSs or Ordinary Shares or any other equity or equity equivalent securities
payable in ADSs or Ordinary Shares (which, for avoidance of doubt, shall not include any Ordinary Shares or ADSs issued by the
Company upon exercise of this Warrant), (ii) subdivides outstanding Ordinary Shares or ADSs into a larger number of Ordinary Shares
or ADSs, as applicable, (iii) combines (including by way of reverse share split) outstanding ADSs or Ordinary Shares into a smaller
number of Ordinary Shares or ADSs, as applicable, or (iv) issues by reclassification of ADSs, Ordinary Shares or any shares of
capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall
be the number of ADSs (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator
shall be the number of ADSs, outstanding immediately after such event, and the number of shares issuable upon exercise of this
Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment
made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of shareholders
entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of
a subdivision, combination or re-classification.

 

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b)       [RESERVED]

 

c)       Subsequent
Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues
or sells any Ordinary Share Equivalents or rights to purchase shares, warrants, securities or other property pro rata to the record
holders of any class of ADSs (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the
terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had
held the number of ADSs acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof,
including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the
grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of ADSs
are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, that, to the extent
that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership
Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership
of such ADSs as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance
for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership
Limitation).

 

d)       Pro
Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend (other
than cash) or other distribution of its assets (or rights to acquire its assets) to holders of Ordinary Shares or ADSs, by way
of return of capital or otherwise (including, without limitation, any distribution of shares or other securities, property or options
by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction)
(a “Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Holder shall
be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder
had held the number of ADSs acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof,
including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such
Distribution, or, if no such record is taken, the date as of which the record holders of Ordinary Shares or ADSs are to be determined
for the participation in such Distribution (provided, however, that, to the extent that the Holder's right to participate
in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be
entitled to participate in such Distribution to such extent (or in the beneficial ownership of any Ordinary Shares or ADSs as a
result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the
Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

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e)       Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly,
effects any sale, lease, exclusive license, assignment, transfer, conveyance or other disposition of all or substantially all of
its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another Person) is completed pursuant to which holders of Ordinary Shares (including any Ordinary
Shares underlying the ADSs) are permitted to sell, tender or exchange their shares for other securities, cash or property and has
been accepted by the holders of 50% or more of the outstanding Ordinary Shares (including any Ordinary Shares underlying the ADSs),
(iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization
of the Ordinary Shares or any compulsory share exchange pursuant to which the Ordinary Shares effectively converted into or exchanged
for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates
a share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off,
merger or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than
50% of the outstanding Ordinary Shares (including any Ordinary Shares underlying the ADSs) (not including any ADSs or Ordinary
Shares held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making
or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”),
then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share represented
by each Warrant ADSs that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction,
at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares
of capital stock of the successor or acquiring corporation or of the Company, if the Company is the surviving corporation, and
any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction
by a holder of the number of Warrant Shares represented by the Warrant ADSs for which this Warrant is exercisable immediately prior
to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant). For purposes
of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration
based on the amount of Alternate Consideration issuable in respect of one Ordinary Share (including any Warrant Shares underlying
the ADSs), in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration
in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of
Ordinary Shares are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the
Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following
such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is
not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this
Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(e) pursuant to written agreements
in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such
Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant, a security
of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is
exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to
the Warrant Shares underlying the Warrant ADSs acquirable and receivable upon exercise of this Warrant (without regard to any limitations
on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price
hereunder to such shares of capital stock (but taking into account the relative value of the Ordinary Shares underlying the Warrant
ADSs pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock
and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation
of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence
of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the
date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity
had been named as the Company herein.

 

    	 	10	 

    	 

    

 

f)       Calculations.
All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of an ADS, as the case may be. For
purposes of this Section 3, the number of Ordinary Shares deemed to be issued and outstanding as of a given date shall be the sum
of the number of Ordinary Shares (including Ordinary Shares underlying ADSs, but excluding treasury shares, if any) issued and
outstanding.

 

g)       Notice
to Holder.

 

i.       Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly
deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment
to the number of Warrant ADSs and setting forth a brief statement of the facts requiring such adjustment.

 

    	 	11	 

    	 

    

 

ii.       Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the
Ordinary Shares or ADSs, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Ordinary
Shares or ADSs, (C) the Company shall authorize the granting to all holders of the Ordinary Shares or ADSs rights or warrants to
subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any shareholders of the
Company shall be required in connection with any reclassification of the Ordinary Shares or ADSs, any consolidation or merger to
which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory
share exchange whereby the Ordinary Shares are converted into other securities, cash or property, or (E) the Company shall authorize
the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company
shall cause to be delivered by facsimile or email to the Holder at its last facsimile number or email address as it shall appear
upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter
specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption,
rights or warrants, or if a record is not to be taken, the date as of which the holders of the Ordinary Shares or ADSs of record
to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such
reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date
as of which it is expected that holders of the Ordinary Shares (including Warrant Shares underlying Warrant ADSs) of record shall
be entitled to exchange their Ordinary Shares for securities, cash or other property deliverable upon such reclassification, consolidation,
merger, sale, transfer or share exchange; provided that the failure to deliver such notice or any defect therein or in the delivery
thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice
provided in this Warrant constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries,
the Company shall simultaneously file such notice with the Commission pursuant to a Report on Form 6-K. The Holder shall remain
entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering
such notice except as may otherwise be expressly set forth herein.

 

    	 	12	 

    	 

    

 

Section 4.      Transfer
of Warrant.

 

		a)	Transferability. Pursuant to FINRA Rule 5110(g)(1), neither this Warrant nor any Warrant Shares
issued upon exercise of this Warrant shall be sold, transferred, assigned, pledged or hypothecated , or be the subject of any hedging,
short sale, derivative, put or call transaction that would result in the effective economic disposition of the securities by any
person for a period of 180 days immediately following the date of effectiveness or commencement of sales of the offering pursuant
to which this Warrant is being issued, except the transfer of any security:

 

		i.	by operation of law or by reason of reorganization of the Company;

 

		ii.	to any FINRA member firm participating in the offering and the officers and partners thereof, if all
securities so transferred remain subject to the lock-up restriction in this Section 4(a) for the remainder of the time period;

 

		iii.	if the aggregate amount of the securities of the Company held by the placement agent or related persons
do not exceed 1% of the securities being offered;

 

		iv.	that is beneficially owned on a pro-rata basis by all equity owners of an investment fund, provided
that no participating member manages or otherwise directs investments by the fund, and participating members in the aggregate do
not own more than 10% of the equity in the fund; or

 

		v.	the exercise or conversion of any security, if all securities received remain subject to the lock-up
restriction in this Section 4(a) for the remainder of the time period.

 

Subject to
the foregoing restriction and subject to compliance with any applicable securities laws and the conditions set forth in Section
4(d) hereof and to the provisions of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder are transferable,
in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with
a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney
and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required,
such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable,
and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant
evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding anything
herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder
has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading
Days of the date on which the Holder delivers an assignment form to the Company assigning this Warrant in full. The Warrant, if
properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant ADSs without having a new
Warrant issued.

 

    	 	13	 

    	 

    

 

b)       New
Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the
Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by
the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants
to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the Initial
Exercise Date and shall be identical with this Warrant except as to the number of Warrant ADSs issuable pursuant thereto.

 

c)       Warrant
Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered
Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and
for all other purposes, absent actual notice to the contrary.

 

d)       Transfer
Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer
of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the Securities Act and
under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions or
current public information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer,
that the Holder or transferee of this Warrant, as the case may be, comply with the provisions of Section 5.7 of the Purchase Agreement.

 

e)       Representation
by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any
exercise hereof, will acquire the Warrant ADSs issuable upon such exercise, for its own account and not with a view to or for distributing
or reselling such Warrant ADSs or any part thereof in violation of the Securities Act or any applicable state securities law, except
pursuant to sales registered or exempted under the Securities Act.

 

Section 5.        Miscellaneous.

 

a)      Legends.The
Holders agree to the provisions of Section 4.1 of the Purchase Agreement, including the restrictive legends and restrictions on
transfer.

 

    	 	14	 

    	 

    

 

b)       No
Rights as Shareholder Until Exercise; No Settlement in Cash. This Warrant does not entitle the Holder to any voting rights,
dividends or other rights as a shareholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except
as expressly set forth in Section 3. Without limiting any rights of a Holder to receive Warrant ADSs on a “cashless exercise”
pursuant to Section 2(c) or to receive cash payments pursuant to Section 2(d)(i) and Section 2(d)(iv) herein, in no event shall
the Company be required to net cash settle an exercise of this Warrant.

 

c)       Loss,
Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
ADSs, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of
the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate,
if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation,
in lieu of such Warrant or stock certificate.

 

d)       Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or
granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding
Business Day.

 

e)       Authorized
Shares.

 

The Company covenants
that, during the period the Warrant is outstanding, its directors will have authority to allot a sufficient number of shares to
provide for the issuance of the Warrant ADSs and the underlying Ordinary Shares upon the exercise of any purchase rights under
this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who
are charged with the duty of issuing the Warrant Shares needed for the Depositary to issue the necessary Warrant ADSs upon the
exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure
that such Warrant Shares and Warrant ADSs and the underlying Ordinary Shares may be issued as provided herein without violation
of any applicable law or regulation, or of any requirements of the applicable Trading Market upon which the ADSs and Ordinary Shares
may be listed. The Company covenants that all Warrant ADSs and the underlying Ordinary Shares which may be issued upon the exercise
of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment
for such Warrant ADSs in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all
taxes, liens and charges created by the Company in respect of the issue thereof (other than any transfer restrictions and taxes
in respect of any transfer occurring contemporaneously with such issue).

 

    	 	15	 

    	 

    

 

Except and
to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending
its articles of association or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale
of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant,
but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be
necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the
generality of the foregoing, the Company will (i) not increase the par value of any Warrant ADSs above the amount payable therefor
upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate
in order that the Company may validly and legally issue fully paid and nonassessable Warrant ADSs and the underlying Ordinary Shares
upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or
consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its
obligations under this Warrant.

 

Before taking
any action which would result in an adjustment in the number of Warrant ADSs for which this Warrant is exercisable or in the Exercise
Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any
public regulatory body or bodies having jurisdiction thereof.

 

f)       Jurisdiction.
All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance
with the provisions of the Purchase Agreement.

 

g)       Restrictions.
The Holder acknowledges that the Warrant ADSs acquired upon the exercise of this Warrant, if not registered, will have restrictions
upon resale imposed by state and federal securities laws.

 

h)       Nonwaiver
and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate
as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision
of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant,
which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to
cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings,
incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

 

i)       Notices.
Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered
to the address for the Holder that appears in the Company’s Warrant Register.

 

j)       Limitation
of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase
Warrant ADSs, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder
for the purchase price of any ADSs or Ordinary Shares or as a shareholder of the Company, whether such liability is asserted by
the Company or by creditors of the Company.

 

    	 	16	 

    	 

    

 

k)       Remedies.
The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled
to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert
the defense in any action for specific performance that a remedy at law would be adequate.

 

l)       Depositary.
For the avoidance of doubt, notwithstanding anything to the contrary contained herein, the Depositary’s rights and obligations
with respect to the Company and the ADSs (including the Warrant ADSs) shall be as set forth in, and subject to, the terms and provisions
of the deposit agreement among, inter alia, the Company and the Depositary and in no event shall this Warrant be deemed
or construed to impose any additional obligations or liabilities on the Depositary.

 

m)       Successors
and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure
to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns
of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and
shall be enforceable by the Holder or holder of Warrant ADSs.

 

n)       Company
Acknowledgement. The Company acknowledges that the Company has received the aggregate nominal amount of the Ordinary Shares
underlying the Warrant ADSs upon exercise of this Warrant and the Company shall hold such aggregate nominal amount in trust and
shall apply it as applicable in connection with exercises of this Warrant pursuant to Section 2(c) herein.

 

o)       Amendment.
This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

 

p)       Severability.
Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions
of this Warrant.

 

q)       Headings.
The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of
this Warrant.

 

 

********************

 

 

(Signature Page Follows)

 

    	 	17	 

    	 

    

 

IN WITNESS WHEREOF, the
Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

 

 

	 	midatech pharma plc

 

 

	 	By:	 
	 	 	Name:

        Title:

 

    	 	18	 

    	 

    

 

NOTICE OF EXERCISE

 

To:     midatech
pharma plc

 

(1)       The
undersigned hereby elects to purchase ________ Warrant ADSs of the Company pursuant to the terms of the attached Warrant (only
if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes,
if any.

 

(2)       Payment
shall take the form of (check applicable box):

 

[  ] in lawful money of the United
States; or

 

[  ] if permitted, the cancellation
of such number of Warrant ADSs as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant
with respect to the maximum number of Warrant ADSs purchasable pursuant to the cashless exercise procedure set forth in subsection
2(c).

 

(3)       Please
register issue said Warrant ADSs in the name of the undersigned or in such other name as is specified below:

 

For Warrant ADSs not
bearing a restrictive legend

DTC Participant name and number:
________________________

Contact of DTC Participant: _______________________

Telephone Number of Participant
Contact: _____________________

 

For Warrant ADSs bearing a restrictive
legend

Name:_______________________________

Address:______________________________

Tax ID:_______________________________

Telephone Number of Holder:______________

 

The Warrant ADSs shall be delivered to
the following DWAC Account Number:

_______________________________

_______________________________

_______________________________

 

(4) Accredited Investor.
If the Warrant is being exercised via cash exercise, the undersigned is an “accredited investor” as defined in Regulation
D promulgated under the Securities Act of 1933, as amended.

 

[SIGNATURE
OF HOLDER]

 

Name of Investing Entity: ________________________________________________________________________

Signature of Authorized Signatory of
Investing Entity: _________________________________________________

Name of Authorized Signatory: ___________________________________________________________________

Title of Authorized Signatory: ____________________________________________________________________

Date: ________________________________________________________________________________________

 

    	 		 

    	 

    

 

EXHIBIT B

 

ASSIGNMENT FORM

(To assign the foregoing
Warrant, execute this form and supply required information. Do not use this form to purchase Warrant ADSs.)

 

FOR VALUE RECEIVED, the
foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	Name:	 	
	 	 	(Please Print)
	 	 	 
	Address:	 	
	
         
	 	
        (Please Print)

        

        

         

	Phone Number:	 	 
	 	 	 
	Email Address:	 	 
	 	 	 
	Dated: _______________ __, ______	 	 
	 	 	 
	Holder’s Signature:                                                     	 	 
	 	 	 
	Holder’s Address:Exhibit 4.3

 

 

 

 

 

 

	DATED: 	May 18, 2020

 

 

 

 

 

  

MIDATECH PHARMA PLC

 

 

 

 

 

 

 

 

 

WARRANT INSTRUMENT 

 

 

 

 

 

 

 

 

 

    	 	 	 

    	 	 

    

 

Contents

 

	 	 	Page
	1	Definitions and interpretation	1
	2	Subscription rights	3
	3	Warrant Certificates	4
	4	Exercise of warrants	5
	5	Undertakings	7
	6	Adjustment Events	8
	7	Takeovers	8
	8	Winding up of the Company	8
	9	Transfer and title	9
	10	Meetings of Warrantholders	9
	11	Modifications	10
	12	Purchase and cancellation	10
	13	Availability of instrument and notices	10
	14	Enforcement	10
	15	Governing law	11
	Schedule 1 Form of Warrant Certificate	12
	Schedule 2 Registration, Transfer and Transmission	14
	Schedule 3 Meetings of Warrantholders	18
	Schedule 4 Adjustments	22
	Execution page  	25

 

    	 	i 	 

    	 	 

    

 

Warrant Instrument

 

Dated 

 

Party

 

		(1)	MIDATECH PHARMA PLC, incorporated and registered in England and Wales with company number
09216368, whose registered office is at Oddfellows House, 19 Newport Road, Cardiff, Wales, CF24 0AA (the “Company”);

 

Background

 

		(A)	The Company, by resolution of its Directors, has resolved conditional upon Admission (as defined
below), to create and issue Warrants to subscribe for Ordinary Shares in the Company on the terms and subject to the conditions
of this Instrument. It being noted that the Company has shareholder approval from its general meeting held on 2 March 2020 to allot
and issue securities on a non pre-emptive basis.

  

 

		(B)	This Instrument has been executed by the Company as a deed poll in favour of the Warrantholders
(as defined below).

 

 

Operative Provisions

 

		1	Definitions and interpretation

 

		1.1	In this Instrument:

 

“Admission”
means the admission of the new ordinary shares of the Company (pursuant to a placing by the Company on or about the date hereof)
to trading on AIM becoming effective in accordance with Rule 6 of the AIM Rules for Companies published by the London Stock Exchange
from time to time;

 

“Act”
means the Companies Act 2006;

 

“Adjustment
Event” has the meaning set out in paragraph 2 of Schedule 4;

 

“AIM”
means AIM, a market operated by the London Stock Exchange;

 

“Articles”
means the articles of association of the Company as amended from time to time;

 

“business
day” means a day (other than Saturday or Sunday or public holiday) on which banks are open for general business in London;

 

“CREST”
the relevant system as defined in the CREST Regulations in respect of which Euroclear is the operator (as defined in the CREST
Regulations) in accordance with which securities may be held in uncertificated form;

 

“CREST
Regulations” the Uncertificated Securities Regulations 2001 (SI 2001 No. 2001/3755) and any modification thereof or any
regulations in substitution therefor for the time being in force;

 

“Euroclear”
means Euroclear UK & Ireland Limited;

 

“Employees’
Share Scheme” means a scheme or plan which is approved by the Company and which is for encouraging or facilitating the
acquisition or holding of securities in or debentures of the Company by or for the benefit of employees or former employees (including
directors or former directors) of the Company or any associated company of the Company;

 

    	 	1	 

    	 	 

    

 

“Exercise
Price” means the sum payable on exercise of one Warrant being 34 pence per Ordinary Share (or such adjusted price as
may be determined from to time in accordance with the provisions of Clause 6 (Adjustment of Subscription Rights));

 

“Expiry
Date” means the date of the [five years six months] anniversary of Admission or if that is not a business day, the first
business day immediately thereafter;

 

“Extraordinary
Resolution” means an Extraordinary Resolution of the Warrantholders passed in accordance with the provisions of Schedule
3 (Meetings of Warrantholders);

 

“Investment
Bank” means an investment bank of international repute as may be nominated from time to time by the Company;

 

“London
Stock Exchange” means London Stock Exchange plc;

 

“Ordinary
Shares” means the ordinary shares of 0.1p each in the capital of the Company (or such other nominal value as may result
from any subdivision or consolidation thereof) with the rights attached thereto in accordance with the Articles;

 

“Register”
means the register of Warrantholders required to be maintained pursuant to Clause 9.1;

 

“Registrar”
means Neville Registrars Limited or such other person or persons appointed by the Company from time to time to maintain the Register;

 

“Scheme”
means a scheme of arrangement under s.899 of the Act between the Company and holders of its Ordinary Shares and/or Warrants pursuant
to which all or the majority of the Ordinary Shares and/or Warrants become vested in a third party;

 

“Specified
Number” means, in the case of certificated holdings, such number of Warrants as shall be specified on the face of the
relevant Warrant Certificate and, in the case of uncertificated holdings, the number of Warrants held in the relevant stock account
maintained under the relevant system (as defined in the CREST Regulations), in each case subject to adjustment pursuant to Clause
6 (Adjustment of Subscription Rights) hereof;

 

“Subscription
Notice” means in relation to any Warrant, in the case of certificated holdings, the notice of subscription attached to
the Warrant Certificate and, in the case of uncertificated holdings, such uncertificated subscription notice as shall be prescribed
by the Board from time to time (subject always to the facilities and requirements of the relevant system concerned);

 

“Subscription
Period” means, in relation to any Warrant, at any time on or after the earlier of (a) a time when there is an effective
registration statement to cover the concurrent issuance of the private placement warrants to purchase ADSs in the US, or (b) 120
days from the date of this Instrument to (and including) the Expiry Date;

 

“Takeover
Code” means The City Code on Takeovers and Mergers;

 

“Takeover
Offer” means a takeover offer within the meaning of s.974 of the Act;

 

    	 	2	 

    	 	 

    

 

“Warrant
Certificate” means a certificate evidencing a holding of Warrants in certificated form, such certificate being in or
substantially in the form set out in Schedule 1 (Form of Warrant Certificate);

 

“Warrantholder”
means in relation to any Warrant, the person or persons who is or are for the time being the registered holder or joint holders
of such Warrant;

 

“Warrants”
means the rights created by this Instrument entitling the holders thereof to subscribe for Ordinary Shares on the terms set out
in this Instrument;

 

		1.2	Wherever in this Instrument reference shall be made to a determination or certification to be made
by or an opinion to be given by the Investment Bank, the following provisions shall apply:

 

		1.2.1	the Investment Bank shall be deemed to act as an expert and not an arbitrator and applicable laws
relating to arbitration shall not apply;

 

		1.2.2	the determination of the Investment Bank shall be final and binding on all concerned; and

 

		1.2.3	the Investment Bank shall be given by the Company all such information and other assistance as
they may reasonably require.

 

		1.3	The Clause headings are inserted for guidance only and shall not affect the meaning or interpretation
of any part of this Instrument.

 

		1.4	Reference to Clauses, sub-clauses and Schedules in this Instrument are references to the Clauses,
sub clauses and Schedules of and to this Instrument.

 

		1.5	References to any statute or statutory provision include references to that statute or statutory
provision as from time to time amended, extended or re-enacted and to any rules, orders, regulations and delegated legislation
made thereunder.

 

		1.6	Words and phrases, the definitions of which are contained or referred to in the Act shall be construed
as having the meanings thereby attributed to them but excluding any statutory modification not in force at the date of this Instrument.

 

		1.7	Words importing the singular shall include the plural and vice versa; words importing the masculine
shall include the feminine and neuter and vice versa; words importing persons shall include bodies corporate, unincorporated associations
and partnerships.

 

		1.8	References herein to a Warrant (or to a holding of Warrants) being in uncertificated form or in
certificated form are references, respectively, to that Warrant being an uncertificated unit of a security or a certificated unit
of a security. For the purposes of these terms and conditions, a dematerialised instruction is properly authenticated if it complies
with the specifications referred to in the CREST Regulations.

 

		1.9	References to the issue of Ordinary Shares shall include the transfer and/or delivery of Ordinary
Shares by the Company, whether newly issued and allotted or previously existing.

 

		2	Subscription rights

 

		2.1	The Company hereby creates, pursuant to a resolution of its board of directors passed on or before
the date hereof, rights, subject to the provisions of this Instrument and conditional upon Admission, to subscribe on any day during
the Subscription Period for, in total, up to 313,846,440 Ordinary Shares on the basis that one Warrant entitles the Warrantholder
to subscribe for one Ordinary Share (subject to adjustment pursuant to Clause 6 (Adjustment of Subscription Rights) hereof)
at the Exercise Price payable in cash in full on subscription.

 

    	 	3	 

    	 	 

    

 

		2.2	The Warrants may be granted to the proposed Warrantholder for no payment. Upon the grant of any
Warrant the Company shall enter the person or persons to whom the Warrant is granted into the Register in respect of such Warrant.
The Warrants registered in a Warrantholder’s name may be held in certificated form (in which event they will be evidenced
by a Warrant Certificate issued by the Company) or in uncertificated form.

 

		2.3	The Company shall, upon exercise of all or any of the Warrants in accordance with Clause 4 (Exercise
of Warrants) from time to time during the Subscription Period forthwith allot and issue the number of Ordinary Shares required
to be allotted and issued in accordance with the terms of this Instrument.

 

		2.4	The rights to subscribe represented by Warrants shall be subject to and have the benefit of the
terms and conditions set out in this Instrument which shall be binding upon the Company, the Warrantholders and all persons claiming
through or under them respectively.

 

		2.5	The Warrants are issued subject to the Articles and, in the case of Warrants held in uncertificated
form, the CREST Regulations and otherwise on the terms of this Instrument which are binding upon the Company and each Warrantholder
and all persons claiming through them.

 

		2.6	For the avoidance of doubt, nothing herein shall require title to Warrants which are held in uncertificated
form to be evidenced or transferred by written instrument and, accordingly, any provision herein which is inconsistent with the
holding of Warrants in uncertificated form or the transfer of title to Warrants by means of a relevant system (as defined in the
CREST Regulations) or any provision of the CREST Regulations shall not apply to any Warrants held in uncertificated form.

 

		2.7	The Company shall be entitled at any time:

 

		2.7.1	to require the holder of any Warrants which are held in uncertificated form to convert such Warrants
into certificated form; and/or

 

		2.7.2	to require the operator (as defined in the CREST Regulations) to suspend or remove Warrants that
are held in uncertificated form from the relevant system concerned.

 

		2.8	For the avoidance of doubt the Warrants will not be admitted to trading on AIM.

 

		3	Warrant Certificates

 

		3.1	Every Warrant Certificate shall be in the form or substantially in the form set out in Schedule
1 (Form of Warrant Certificate) and shall have endorsed thereon a Subscription Notice in the form or substantially in the
form set out in Schedule 1 (Form of Warrant Certificate).

 

		3.2	Every Warrantholder whose Warrants are held in certificated form shall be entitled without charge
to one Warrant Certificate for the Warrants held by him save that joint holders shall be entitled to one certificate only in respect
of the Warrants held by them jointly which certificate shall be delivered to the holder whose name stands first in the Register
in respect of such joint holding. The Company shall not be bound to register more than four persons as joint holders of any Warrants.

 

    	 	4	 

    	 	 

    

 

		3.3	Where some but not all of the Warrants comprised in any Warrant Certificate are transferred or
exercised the Company shall issue, free of charge, to the relevant Warrantholder a fresh Warrant Certificate in accordance with
the other provisions of this Instrument for the balance of the Warrants retained by such Warrantholder.

 

		3.4	All Warrant Certificates shall be executed by the Company.

 

		3.5	If a Warrant Certificate is mutilated, defaced, lost, stolen or destroyed, it shall, at the discretion
of the Company, be replaced at the office of the Registrar on payment of such expenses as may reasonably be incurred in connection
therewith and on such terms as to evidence, indemnity and/or security as the Company may reasonably require. Mutilated or defaced
Warrant Certificates must be surrendered before replacements will be issued.

 

		4	Exercise of warrants

 

		4.1	Subject to Clause 4.11, Clause 6 (Adjustment of Subscription Rights), Cause 7 (Takeovers)
and/or Clause 8 (Winding up of the Company) the Warrantholder of each Warrant will have the right, which may be exercised
on any business day during the Subscription Period, to subscribe in cash for all or part of the Specified Number of fully paid
Ordinary Shares in consideration of the payment of the Exercise Price in full per Warrant.

 

		4.2	In order to exercise the right to subscribe attaching to a Warrant, Warrantholders whose Warrants
are held in certificated form shall deliver or cause to be delivered the relevant Warrant Certificates to the Registrar with the
Subscription Notice duly completed and signed, together with a remittance in cleared funds for the Exercise Price in respect of
each Warrant being exercised. Once so delivered, a Subscription Notice shall be irrevocable save with the consent of the Board.

 

		4.3	The subscription rights which are conferred by any Warrants that are held in uncertificated form
shall be exercisable, in whole or in part, (and treated by the Company as exercised) if an uncertificated subscription notice is
received by the Company as referred to below and the remittance in cleared funds for the Exercise Price in respect of each Warrant
being exercised is received by the Company or by such person as it may require for these purposes in such form and subject to such
terms and conditions as may from time to time be prescribed by or on behalf of the Company. For these purposes an “uncertificated
subscription notice” shall mean a properly authenticated dematerialised instruction received by the Company, or by such person
as it may require, in such form and subject to such terms and conditions and having such effect as may from time to time be prescribed
by or on behalf of the Company (subject always to the facilities and requirements of the relevant system concerned) that is attributable
to the system-member who is the holder of the Warrants concerned and/or such other instruction or notification as may from time
to time be prescribed by or on behalf of the Company. The Company may, in addition, determine when any such properly authenticated
dematerialised instruction and/or other instruction or notification and any such remittance is to be treated as received by the
Company or by such person that it may require for these purposes (subject always to the facilities and requirements of the relevant
system concerned). Without prejudice to the generality of the foregoing, the effect of the properly authenticated dematerialised
instruction and/or other instruction or notification referred to above may be such as to divest the holder of the Warrants concerned
of the power to transfer such Warrants to another person. Once lodged, an uncertificated subscription notice shall be irrevocable
save with the consent of the Company. For the avoidance of doubt, unless the Company otherwise determines, or unless the CREST
Regulations and/or rules of the relevant system concerned otherwise require, the Ordinary Shares issued on the exercise of any
subscription rights shall be issued:

 

    	 	5	 

    	 	 

    

 

		4.3.1	in uncertificated form where such subscription rights were conferred by Warrants which were held
in uncertificated form on the date of notification of exercise; or

 

		4.3.2	in certificated form where such subscription rights were conferred by Warrants held in certificated
form on the date of the notification of exercise.

 

Whether any
Warrants are held in certificated form or uncertificated form on the exercise date shall be determined by reference to the register
of Warrantholders as at the close of business on the relevant date or such other time as the Board may (subject to the facilities
and requirements of the relevant system concerned) in its absolute discretion determine. Compliance must also be made in relation
to any exercise of subscription rights with any statutory and regulatory requirements for the time being applicable.

 

		4.4	Warrants will be deemed to be exercised on the business day upon which the Registrar shall have
received the relevant documentation and remittance referred to in this Clause 4 (Exercise of Warrants). Subject to value
having been received by the Company in respect of the relevant remittance, the Company shall allot the Ordinary Shares to be issued
pursuant to the exercise of subscription rights attaching to any Warrant and enter the allottee of such Ordinary Shares in the
Company’s register of members not later than 14 days after the date on which such Warrants are exercised.

 

		4.5	In the case of Ordinary Shares issued pursuant to the exercise of subscription rights conferred
by Warrants held in certificated form, as soon as practicable following the exercise of Warrants in accordance with the terms of
this Instrument and, in any event, not later than 7 days after the date on which the allottee of such Ordinary Shares is entered
in the register of members, the Company shall issue:

 

		4.5.1	a certificate for the Ordinary Shares in the name of such Warrantholder set out in the Warrant
Certificate; and

 

		4.5.2	in the event of a partial exercise by any Warrantholder of the right to subscribe attaching to
any Warrants held by him a Warrant Certificate in the name of such Warrantholder in respect of the balance of the Warrants represented
by the relevant Warrant Certificate and remaining unexercised.

 

		4.6	In respect of any subscription rights conferred by Warrants held in certificated form the certificate
for the Ordinary Shares arising on the exercise of Warrants (together with any balancing Warrant Certificate) will be despatched
at the risk of the person entitled thereto to the address of such person or (in the case of a joint holding) to that one of them
whose name stands first in the Register and will be sent by ordinary postal delivery.

 

		4.7	Ordinary Shares issued pursuant to the exercise of subscription rights which were conferred by
Warrants held in uncertificated form will, unless the Company otherwise determines or unless the CREST Regulations and/or the rules
of the relevant system concerned otherwise require, be issued in uncertificated form and will be credited to the account of the
person(s) in whose name(s) the Warrants concerned were registered at the date of such exercise (being an account maintained by
the relevant system concerned under the same participant and member account identification codes as the account to which the Warrants
concerned were credited immediately prior to such exercise).

 

    	 	6	 

    	 	 

    

 

		4.8	Every Warrant in respect of which subscription rights:

 

		4.8.1	have been exercised in full; or

 

		4.8.2	at the end of the Subscription Period have not been exercised, shall lapse and be cancelled

 

		4.9	Ordinary Shares allotted pursuant to the exercise of Warrants in accordance with the terms of this
Instrument shall be issued fully paid and free from any liens, charges or encumbrances and rights of pre-emption but shall not
rank for any dividends or other distributions declared, made or paid on the Ordinary Shares for which the record date is prior
to the relevant day on which the Warrants are exercised but, subject thereto, shall rank in full for all dividends and other distributions
declared, made or paid on the Ordinary Shares on or after the relevant day on which the Warrants are exercised and otherwise pail
passu in all respects with the Ordinary Shares in issue at that date.

 

		4.10	At any time when the Ordinary Shares are admitted to trading on AIM, application will be made by
the Company to the London Stock Exchange for the Ordinary Shares allotted pursuant to any exercise of Warrants to be admitted to
trading on AIM and the Company will use its reasonable endeavours to obtain such admission so as to be effective simultaneously
with the allotment of the relevant Ordinary Shares pursuant to the exercise of the Warrants in accordance with the terms of this
Instrument becoming effective.

 

		4.11	A Warrantholder shall be prohibited from exercising the rights to subscribe attaching to a Warrant
if it would result in such exercising Warrantholder together will all persons with whom it is acting in concert triggering a requirement
to make a mandatory offer under Rule 9 of the Takeover Code.

 

		5	Undertakings

 

		5.1	Subject to the provisions of Clause 6 and, unless otherwise authorised by an Extraordinary Resolution,
whilst any Warrant remains exercisable:

 

		(a)	the Company shall not in any way modify the rights attached to its existing Ordinary Shares as
a class in any way which operates to vary the rights of the Warrantholders in relation to the Warrants (but nothing herein shall
restrict the right of the Company to increase, consolidate, sub-divide or reduce its share capital subject to any adjustments to
the subscription rights as may be required by this Instrument). For the purposes of this subparagraph, the creation or issue of
preference shares (whether convertible, redeemable and/or cumulative) carrying rights to dividends, capital conversion or otherwise
as the directors of the Company shall think fit, shall not be deemed to modify the rights attaching to the Ordinary Shares; and

 

		(b)	Warrantholders will have made available to them, at the same time and in the same manner as the
same are made available to holders of Ordinary Shares, copies of the audited accounts of the Company (with the relevant directors’
and auditor’s reports) and copies of all other circulars or notices which are made available to holders of Ordinary Shares.

 

    	 	7	 

    	 	 

    

 

		6	Adjustment Events

 

		6.1	If an Adjustment Event occurs:

 

		6.1.1	the number of Ordinary Shares for which each Warrantholder is entitled to subscribe; and

 

		6.1.2	the Exercise Price payable in respect of such subscription, shall each be subject to adjustment
in accordance with the provisions set out in Schedule 4.

 

		6.2	Whenever an adjustment is to be made under this Clause 6, the Company shall as soon as reasonably
practicable give notice pursuant to paragraph 4 of Schedule 2 to the Warrantholders, together with a Warrant Certificate (where
such Warrantholders are holding in certificated form) evidencing the rights to which the Warrantholders are entitled in consequence
of such adjustments.

 

		7	Takeovers

 

		7.1	The Company shall notify the Warrantholders of the terms of any proposed Takeover Offer or Scheme
at the same time as such terms are communicated to shareholders of the Company.

 

		7.2	The Company shall notify the Warrantholders when any Takeover Offer becomes wholly unconditional,
or Scheme becomes effective, at the same time as that fact is publicly announced or otherwise communicated to shareholders of the
Company.

 

		7.3	If a Takeover Offer becomes wholly unconditional, or a Scheme becomes effective, before the subscription
rights with respect to all Warrants have been exercised, the Company shall use its reasonable endeavours to procure that an appropriate
offer (as such term is interpreted pursuant to Rule 15 of the Takeover Code (“Rule 15”) is extended to the Warrantholders
in accordance with Rule 15.

 

		8	Winding up of the Company

 

		8.1	If at any time prior to the Expiry Date an order is made or an effective resolution is passed for
the winding up or dissolution of the Company or if any other dissolution of the Company by operation of law is to be effected:

 

		8.1.1	if the winding up or dissolution is for the purposes of implementing a reconstruction, amalgamation
or scheme of arrangement on terms previously sanctioned by an Extraordinary Resolution, such terms shall be binding on the Warrantholders;
and

 

		8.1.2	in any other case, the Company shall as soon as reasonably practicable send to the Warrantholders
a written notice stating that such an order has been made or resolution has been passed or other dissolution is to be effected.
Each Warrantholder may at any time within 60 days after the date of such notice elect, by written notice to the Company, to be
treated as if he had, immediately before the date of the making of the order or the passing of the resolution or other dissolution,
exercised some or all of his subscription rights. On giving such notice, a Warrantholder is entitled to receive out of the assets
which would otherwise be available in the liquidation to the shareholders of the Company such sum, if any, as he would have received
had he been the holder of, and paid for, the Ordinary Shares to which he would have become entitled by virtue of that exercise,
after deducting from that sum an amount equal to the aggregate Exercise Price which would have been payable by him upon such exercise.

 

    	 	8	 

    	 	 

    

 

		8.2	Subject to compliance with Clause 8.1, all Warrants shall lapse on liquidation of the Company.

 

		9	Transfer and title

 

		9.1	Warrants shall be transferable individually, in the case of Warrants held in certificated form,
by an instrument of transfer in any usual or common form or such other form as may be approved by or on behalf of the Company,
and, in the case of Warrants held in uncertificated form, by a properly authenticated dematerialised instruction and/or other instruction
or notification received by the Company or by such person as it may require for these purposes in such form and subject to such
terms and conditions as may from time to time be prescribed by or on behalf of the Company (subject always to the facilities and
requirements of the relevant system concerned). The Registrar shall maintain a register of Warrantholders in registered form and
the provisions of Schedule 2 (Registration, Transfer and Transmission) relating to the transfer, transmission and registration
of Warrants shall have full effect as if the same had been incorporated in this Instrument.

 

		9.2	The Company shall be entitled to appoint such person or persons as the Company thinks fit as the
Registrar and to remove any such person or persons and make a new appointment in their stead. The Company shall forthwith give
a notice of any change in the identity or address of the Registrar in accordance with Clause 13.2.

 

		9.3	The registered holder of a Warrant shall be treated as its absolute owner for all purposes notwithstanding
any notice of ownership or notice of previous loss or theft or of trust or other interest therein (except as ordered by a court
of competent jurisdiction or required by law). The Company shall not (except as stated above) be bound to recognise any other claim
to or interest in any Warrant.

 

		10	Meetings of Warrantholders

 

		10.1	Meetings of Warrantholders may be convened in accordance with the provisions of Schedule 3 (Meetings
of Warrantholders) and shall be competent to pass Extraordinary Resolutions and to exercise all the powers as referred to therein.
Without prejudice to the generality of the foregoing, the Warrantholders, by way of Extraordinary Resolution, shall have power
to:

 

		(a)	sanction any compromise or arrangement proposed to be made between the Company and the Warrantholders
or any of them;

 

		(b)	sanction any proposal by the Company for modification, abrogation, variation or compromise of,
or arrangement in respect of the rights of the Warrantholders against the Company whether such rights shall arise under this Instrument
or otherwise;

 

		(c)	sanction any proposal by the Company for the exchange or substitution for the Warrants of, or the
conversion of the Warrants into, shares, stock, bonds, debentures, debenture stock, warrants or other obligations or securities
of the Company or any other body corporate formed or to be formed;

 

		(d)	assent to any modification or the conditions to which the Warrants are subject and/or the provisions
contained in this Instrument which shall be proposed by the Company;

 

		(e)	authorise any person to concur in and execute and do all such documents, acts and things as may
be necessary to carry out and give effect to any Extraordinary Resolution;

 

    	 	9	 

    	 	 

    

 

		(f)	discharge or exonerate any person from any liability in respect of any act or omission for which
such person may have become responsible under this Instrument; and

 

		(g)	give any authority, direction or sanction which under the provisions of this Instrument is required
to be given by Extraordinary Resolution.

 

		11	Modifications

 

		11.1	Any modification to this Instrument may be effected only by an instrument in writing, executed
by the Company and expressed to be supplemental to this Instrument and, save in the case of a modification which is of a formal,
minor or technical nature or made to correct a manifest error, only if it shall first have been sanctioned by an Extraordinary
Resolution.

 

		11.2	A memorandum of every such supplemental instrument shall be endorsed on this Instrument.

 

		11.3	Notice of every modification to this Instrument shall be given by the Company to the Warrantholders
in accordance with Clause 13.2

 

		12	Purchase and cancellation

 

		12.1	The Company may at any time purchase Warrants:

 

		12.1.1	by tender (available to all Warrantholders alike) at any price; or

 

		12.1.2	on or through the market; or

 

		12.1.3	by private treaty at any price.

 

		12.2	All Warrants purchased pursuant to Clause 12.1 shall be cancelled forthwith and may not be reissued
or sold.

 

		13	Availability of instrument and notices

 

		13.1	Every Warrantholder shall be entitled to inspect a copy of this Instrument at the registered office
of the Company during normal business hours (Saturdays, Sundays and public holidays in the United Kingdom excepted), and shall
be entitled to receive a copy of this Instrument against payment of such charges as the directors of the Company may impose in
their absolute discretion.

 

		13.2	Notices to be given pursuant to the provisions of this Instrument shall be given in accordance
with paragraph 4 of Schedule 2 (Registration, Transfer and Transmission).

 

		14	Enforcement

 

		14.1	The Company acknowledges and covenants that the benefit of the covenants, obligations and conditions
on the part of or binding upon it contained in this Instrument and the Schedules hereto shall enure to the benefit of each and
every Warrantholder.

 

		14.2	Each Warrantholder shall be entitled to enforce the said covenants, obligations and conditions
against the Company insofar as such Warrantholder’s Warrant is concerned, without the need to join the allottee of any such
Warrant or any intervening or other Warrantholder in the proceedings for such enforcement.

 

    	 	10	 

    	 	 

    

 

		15	Governing law

 

		15.1	This Instrument shall be governed by and construed and interpreted in accordance with English law
and the Warrantholders agree to submit to the exclusive jurisdiction of the English courts in relation to any claim, dispute or
difference which may arise hereunder.

 

Delivered as an Instrument on the date
of this document.

 

    	 	11	 

    	 	 

    

 

Schedule
1

Form of Warrant Certificate

 

	No. of Certificate:	[•]
	 	 
	Number of Warrants:	[•]
	 	 
	Date of issue:	[•]

Warrants to subscribe for ordinary share(s)
in

 

Midatech Pharma Plc

 

Registered Office: Oddfellows House, 19
Newport Road, Cardiff, Wales, CF24 0AA

 

incorporated in England and Wales

 

(Company number: 09216368)

 

This is to certify that [•]

 

of [•]

 

is/are the registered holder(s) of [•]
Warrants in Midatech Pharma Plc issued pursuant to and in accordance with the terms of an Instrument dated [•] 2020
(as from time to time amended) (the “Instrument”) executed by Midatech Pharma Plc. Words and expressions used
in this Warrant Certificate and the Subscription Notice shall have the same meanings as in the Instrument.

 

The registered holder is entitled in respect
of every one Warrant held to subscribe for one Ordinary Share of 0.1p in Midatech Pharma Plc (or such other number of Ordinary
Shares as may for the time being be applicable in accordance with the provisions of the Instrument) at a price of 34 pence per
Ordinary Share (subject to adjustment as referred to in the Instrument) during the Subscription Period.

 

The Instrument is enforceable severally
by each Warrantholder and is available for inspection at the registered office of the Company until the end of the Subscription
Period.

 

Executed by the company Midatech Pharma
Plc this ______ day of _______________ 2020.

 

Subscription Notice

 

In order to exercise all or any of the
Warrants represented by this Warrant Certificate the certificate should be submitted with this Subscription Notice duly completed
and signed, together with the payment referred to below, to the Registrar.

 

		To:	Midatech Pharma Plc

c/o Neville

Neville House

Steelpark
Road

		Halesowen	

West Midlands

B62 8HD

 

I/We the undersigned, being the registered
holder(s) of the Warrants comprised in this Warrant Certificate (and the several Warrant Certificates (if any) enclosed with this
Subscription Notice) hereby give(s) notice of my/our wish to exercise [•] Warrant(s) to subscribe for __________ Ordinary
Shares in Midatech Pharma Plc in accordance with the provisions of the Instrument.

 

    	 	12	 

    	 	 

    

 

I/We enclose payment for £___________
in favour of Midatech Pharma Plc being the aggregate payment of the full subscription price for the total number of such Warrants
being exercised.

 

I/We direct you to allot the registered
shares in Midatech Pharma Plc issued pursuant hereto to me/us in which event I/we agree to accept such shares subject to the articles
of association of Midatech Pharma Plc. I/We request the relevant entry be made in the register of shareholders of the Company in
respect thereof.

 

I/We require the despatch of: (1) _________
certificates in respect of the Ordinary Shares in Midatech Pharma Plc; and (2) a Warrant Certificate in my/our name(s) for any
balance of my/our Warrants remaining exercisable, at my/our own risk to my/our address set out in the Register of Warrantholders
or (in the case of joint holders) to the address of that one whose name stands first in the Register in respect of the Warrants
represented by this Warrant Certificate by ordinary postal service.

 

Dated _______________

 

Signature(s)

  

 

	 
	 
	 

 

 

Guidance notes:

 

Exercise of the Warrants represented by
this Warrant Certificate may be consolidated with the exercise of Warrants represented by other Warrant Certificates by the use
of only one Subscription Notice, provided that the other Warrant Certificates are attached to the Subscription Notice.

 

In the case of joint holdings, all joint
holders must sign.

 

    	 	13	 

    	 	 

    

 

Schedule
2

Registration, Transfer and Transmission

 

		1	Registration and Title

 

		1.1	An accurate register of the Warrants (the “Register”) will be kept by the Registrar
at the registered office of the Company and there shall be entered in the Register:

 

		1.1.1	the names and addresses of the Warrantholders and, in the case of Warrants held in uncertificated
form, the details of the Warrantholder’s stock account with the relevant system;

 

		1.1.2	the amount of Warrants held by every registered holder; and

 

		1.1.3	the date upon which the name of every such registered holder is entered in respect of the Warrants
standing in his name.

 

		1.2	Any change of name or address on the part of a Warrantholder and, in the case of Warrants held
in uncertificated form, the details of the Warrantholder’s stock account with the relevant system shall forthwith be notified
to the Registrar who shall cause the Register to be altered accordingly. The Register may be closed by the Company for such period
or periods and at such times as it may think fit provided that it shall not be closed for more than thirty days in any calendar
year. Any transfer or request for exercise made while the Register is so closed shall, as between the Company and the person claiming
under the transfer or person requesting the exercise of his subscription rights, be considered as made immediately after the reopening
of the Register. The Warrantholders or any of them, and any person duly authorised by any such holder, shall be at liberty at all
reasonable times during office hours to inspect the Register and to take copies of or extracts from the same or any part thereof.

 

		1.3	The Company shall be entitled to treat the registered holder of any Warrant as the absolute owner
thereof for all purposes notwithstanding any notice of ownership or writing thereon or notice of previous loss or theft or of trust
(whether express or implied) or other interest therein (except as ordered by a court of competent jurisdiction or required by law)
and shall not (except as aforesaid) be bound to recognise any equitable or other claim to or interest in such Warrant.

 

		1.4	Every Warrantholder will be recognised by the Company as entitled to his Warrants free from any
equity, set-off or cross-claim on the part of the Company against the original or any intermediate holder of the Warrants.

 

		2	Transfer

 

		2.1	Every transfer of a Warrant shall be made:

 

		2.1.1	in the case of Warrants held in certificated form by instrument of transfer in the usual or common
form or in any other form which may be approved by the Company and need not be executed as an Instrument. The instrument of transfer
of a Warrant shall be signed by or on behalf of the transferor but need not be signed by or on behalf of the transferee; or

 

		2.1.2	in the case of Warrants held in uncertificated form, by a properly authenticated dematerialised
instruction and/or other instruction or notification received by the Company or by such person as it may require for these purposes
in such form and subject to such terms and conditions as may from time to time be prescribed by or on behalf of the Company (subject
always to the facilities and requirements of the relevant system concerned).

 

    	 	14	 

    	 	 

    

 

The transferor
shall be deemed to remain the holder of the Warrant until the name of the transferee is entered in the Register in respect thereof.
The Company shall not be obliged to give effect to any such instrument which purports to transfer any Warrants in respect of which
a Subscription Notice shall have been received.

 

		2.2	In the case of Warrants held in certificated form the Company may decline to recognise any instrument
of transfer unless such instrument is deposited at the specified office of the Registrar (or such other place as the Registrar
may appoint) accompanied by the Warrant Certificate to which it relates, and such other evidence as the Registrar may reasonably
require to show the right of the transferor to make the transfer and, if the instrument of transfer is executed by some other person
on behalf of the transferor, the authority of that person so to do. The Registrar may waive production of any Warrant Certificate
upon evidence satisfactory to the Registrar of its loss or destruction or upon execution of an appropriate indemnity. All instruments
of transfer which are registered may be retained by the Company for so long as it thinks fit together with the cancelled Warrant
Certificates.

 

		2.3	In the case of Warrants held in certificated form and uncertificated form the Company may decline
to recognise a transfer unless the Warrantholder has given evidence, satisfactory to the Company (acting reasonably), that any
stamp duty or any other taxes or duties payable on transfers of the Warrant(s) (if any) have been paid.

 

		2.4	No fee shall be charged by the Company in respect of the registration of any instrument of transfer
or probate or letters of administration or certificate of marriage or death, or power of attorney or other document relating to
or affecting the title to any Warrants or otherwise for making any entry in the Register affecting the title to any Warrants.

 

		2.5	The registration of a transfer shall be conclusive evidence of the approval by the Company and
the Registrar of the transfer and the Company shall, on registration, in the case of Warrants held in certificated form, issue
the transferee with a Warrant Certificate in respect of the Warrants transferred and, in the case of Warrants held in uncertificated
form, credit the stock account of the transferee held within the relevant system.

 

		3	Transmission

 

		3.1	In the case of the death of a Warrantholder the survivors or survivor where the deceased was a
joint holder, and the executors or administrators of the deceased where he was a sole or only surviving holder, shall be the only
persons recognised by the Company and the Registrar as having any title to his Warrants, but nothing herein contained shall release
the estate of a deceased Warrantholder (whether sole or joint) from any liability in respect of any Warrant solely or jointly held
by him.

 

		3.2	Subject to any other provision herein contained, any person becoming entitled to a Warrant in consequence
of the death or bankruptcy of a Warrantholder or otherwise than by transfer may, upon producing such evidence of title as the Company
shall reasonably require, and subject as hereinafter provided, be registered himself as holder of the Warrant.

 

    	 	15	 

    	 	 

    

 

		3.3	Subject to any other provision herein contained, if any person becoming entitled to a Warrant in
consequence of the death or bankruptcy of a Warrantholder or otherwise than by transfer shall elect to be registered himself, he
shall deliver or send to the Company and the Registrar a notice in writing signed by him stating that he so elects. All the limitations,
restrictions and provisions herein contained relating to the right to transfer and the registration of transfers of Warrants shall
be applicable to any such notice of transfer as aforesaid as if the death or bankruptcy of the Warrantholder had not occurred and
the notice of transfer were a transfer executed by such Warrantholder.

 

		3.4	A person becoming entitled to a Warrant in consequence of the death or bankruptcy of a Warrantholder
shall be entitled to receive and may give good discharge for any monies payable in respect thereof, but shall not be entitled
to receive notices of or to attend or vote at meetings of the Warrantholders or, save as aforesaid, to any of the rights or privileges
of a Warrantholder until he shall have become a Warrantholder in respect of the Warrant.

 

		4	Notices

 

		4.1	Every Warrantholder shall register with the Company and the Registrar an address to which copies
of notices can be sent. Any notice or document may be given or served by the Company on any Warrantholder either personally or
by sending it by post in a prepaid letter addressed to such Warrantholder at his registered address as appearing in the register.

 

		4.2	Any copy notices given pursuant to the provisions of this Schedule with respect to Warrants standing
in the names of joint holders shall be given to whichever of such persons is named first in the Register and such notice so given
shall be sufficient notice to all the holders of such Warrants.

 

		4.3	Proof that an envelope containing a notice was properly addressed, prepaid and posted shall be
conclusive evidence that the notice was given. A notice shall be deemed to be given at the expiration of forty eight hours after
the envelope containing it was posted.

 

		4.4	When a given number of days’ notice or notice extending over any other period is required
to be given, the day of service shall, but the day upon which such notice shall expire shall not, be included in calculating such
number of days or other period. The signature to any notice to be given by the Company may be written or printed.

 

		4.5	Every person who by operation of law, transfer or other means whatsoever becomes entitled to a
Warrant shall be bound by any notice in respect of such Warrant which, before his name is entered in the Register, has been duly
given to the person from whom he derives his title.

 

		4.6	If at any time by reason of the suspension or curtailment of postal services within the United
Kingdom the Company is unable effectively to convene a meeting of the Warrantholders by notices sent through the post such a meeting
may be convened by a notice advertised on the same date in at least two national daily newspapers with appropriate circulations
(and, where there is a suspension or curtailment of postal services within the United Kingdom, at least one of which shall be published
in London) and such notice shall be deemed to have been duly served on all Warrantholders entitled thereto at noon on the
day when the advertisement appears. In any such case the Company shall send confirmatory copies of the notice by post if at least
forty-eight hours prior to the meeting the posting of notices to addresses throughout the United Kingdom again becomes practicable.

 

    	 	16	 

    	 	 

    

 

		4.7	Any Warrantholder present, either personally or by proxy, at any meeting of the Warrantholders
shall for all purposes be deemed to have received due notice of such meeting, and, where requisite, of the purposes for which such
meeting was called.

 

		4.8	Any notice or document delivered or sent by post to or left at the registered address of any Warrantholder
in pursuance of this Instrument shall, notwithstanding that such Warrantholder is then dead, bankrupt, of unsound mind or (being
a corporation) in liquidation, and whether or not the Company has notice of the death, bankruptcy, insanity or liquidation of such
Warrantholder, be deemed to have been duly served in respect of any Warrant registered in the name of such Warrantholder as sole
or joint holder unless his name has at the time of the service of the notice or document been removed from the Register as the
holder of the Warrant, and such service shall for all purposes be deemed a sufficient service of such notice or document on all
persons interested (whether jointly with or as claiming through or under him) in the Warrant

 

    	 	17	 

    	 	 

    

 

Schedule
3

Meetings of Warrantholders

 

		1	Convening of Meetings

 

The Company
may at any time and shall on receipt of a request in writing of persons holding not less than one-tenth of the outstanding Warrants
(upon receiving such indemnity (if any) as it may require against all reasonable costs, expenses and liabilities which it may incur
by so doing) convene a meeting of the Warrantholders. Such meeting shall be held at such place within the United Kingdom as the
Company shall determine.

 

		2	Notice of Meetings

 

		2.1	At least 14 days’ notice in writing of every meeting shall be given to the Warrantholders
in the manner provided by the provisions contained in Schedule 2 (Registration, Transfer and Transmission).

 

		2.2	The notice shall specify the place, day and hour of the meeting and the general nature of the business
to be transacted, but, except in the case where an Extraordinary Resolution is to be proposed, it shall not be necessary to specify
in the notice the terms of the resolutions to be proposed. The notice shall state that a Warrantholder is entitled to appoint a
proxy to attend and, on a poll, to vote instead of him.

 

		2.3	The accidental omission to give notice to or the non-receipt of notice by any of the Warrantholders
shall not invalidate the proceedings at any meeting.

 

		3	Quorum

 

		3.1	At any meeting at least two persons being present in person or by proxy shall form a quorum for
the transaction of any business.

 

		3.2	No business (other than the election of a Chairman) shall be transacted at any meeting unless the
requisite quorum is present at the commencement of business.

 

		4	Absence of Quorum

 

		4.1	If within half an hour from the time appointed for the meeting (or such longer interval as the
Chairman of the meeting may think fit to allow) a quorum is not present, the meeting, if convened upon the requisition of Warrantholders,
shall be dissolved. In any other case it shall stand adjourned to such day and time not being less than seven days nor more than
28 days thereafter and to such place as may be appointed by the Chairman and at such adjourned meeting the Warrantholders present
and entitled to vote shall be a quorum for the transaction of business including the passing of Extraordinary Resolutions.

 

		4.2	At least seven days’ notice of any adjourned meeting of Warrantholders at which an Extraordinary
Resolution is to be submitted shall be given in the same manner as for an original meeting and such notice shall state that the
Warrantholders present at the adjourned meeting whatever their number will form a quorum.

 

		5	Chairman

 

		5.1	The Warrantholders present may choose one of their number to preside at every meeting as Chairman
and, if no such person is chosen or if at any meeting the person chosen shall not be present within 15 minutes after the time appointed
for holding the meeting, a person nominated in writing by the Company shall be Chairman of such meeting. Any Director and the Secretary,
Auditors and solicitors of the Company and any other person authorised in that behalf by the Company may attend and speak at any
meeting.

 

    	 	18	 

    	 	 

    

 

		5.2	The Chairman may, with the consent of any meeting at which a quorum is present, and shall if so
directed by the meeting adjourn the meeting from time to time and from place to place but no business shall be transacted at any
adjourned meeting except business which might lawfully have been transacted at the meeting from which the adjournment took place.
Where a meeting is adjourned, the time and place for the adjourned meeting shall be fixed by the Directors. When a meeting is adjourned
for 30 days or more or, not less than seven days’ notice (exclusive as aforesaid) of the adjourned meeting shall be given
in like manner, as in the case of the original meeting. Save as aforesaid, subject to paragraph 4.2 above, it shall not be necessary
to give any notice of an adjournment or of the business to be transacted at an adjourned meeting.

 

		6	Resolutions

 

		6.1	At any meeting a resolution put to the vote of the meeting shall be decided on a show of hands
unless a poll is (before or on the declaration of the result of the show of hands) demanded by the Chairman or by one or more Warrantholders
present in person or by proxy and holding or representing one-twentieth of the then outstanding Warrants.

 

		6.2	Unless a poll is demanded a declaration by the Chairman that a resolution has been carried or carried
by any particular majority or lost or not carried by any particular majority shall be conclusive evidence of that fact.

 

		7	Poll

 

		7.1	If a poll is duly demanded it shall be taken in such manner and at such time and place as the Chairman
may direct (save that a poll demanded on the election of a Chairman or on any question of adjournment shall be taken at the meeting
without adjournment) and the result of a poll shall be deemed to be the resolution of the meeting at which the poll is demanded.

 

		7.2	The demand for a poll shall not prevent the continuance of a meeting for the transact on of any
business other than the question on which the poil has been demanded. The demand for a poll may be withdrawn.

 

		7.3	No notice need be given of a poll not taken immediately.

 

		8	Voting

 

		8.1	On a show of hands every Warrantholder who is present in person or, being a corporation, by its
authorised representative or proxy shall have one vote. On a poll every Warrantholder who is present in person or by proxy shall
have one vote for every Warrant of which he is the holder.

 

		8.2	In the case of joint holders of Warrants the vote of the senior who tenders a vote whether in person
or by proxy shall be accepted to the exclusion of the vote of the other joint holders and for this purpose seniority shall be determined
by the order in which the names stand in the Register.

 

		8.3	On a poll votes may be given either personally or by proxy and a Warrantholder entitled to more
than one vote need not use all his votes or cast all the votes he uses in the same way.

 

    	 	19	 

    	 	 

    

 

		8.4	No objection shall be raised to the qualification of any person voting except at the meeting or
adjourned meeting at which the vote objected to is tendered, and every vote not disallowed at the meeting shall be valid. Any objection
made in due time shall be referred to the Chairman whose decision shall be final and conclusive.

 

		8.5	In the case of an equality of votes whether on a show of hands or on a poll the Chairman of the
meeting at which the show of hands takes place or at which the poll is demanded shall be entitled to a casting vote in addition
to the votes (if any) to which he may be entitled as a Warrantholder.

 

		9	Proxies

 

		9.1	The instrument appointing a proxy shall be in writing under the hand of the appointor or of his
attorney duly authorised in writing or, if the appointor is a corporation, either duly executed or under the hand of some duly
authorised officer or attorney of the corporation.

 

		9.2	A person appointed to act as a proxy need not be a Warrantholder. The Chairman of the meeting may
be designated as a proxy in an instrument of proxy without being named.

 

		9.3	The instrument appointing a proxy and the letter or power of attorney or other authority (if any)
under which it is signed or a notarially certified copy of such power or authority shall be deposited at such place (if any) specified
for that purpose in or by way of note to or in any document accompanying the notice convening the meeting (or, if no place is so
specified, at the registered office of the Company) not less than 48 hours before the time appointed for holding the meeting or
adjourned meeting (or, in the case of a poll otherwise than at or on the same day as the meeting or adjourned meeting, before the
time appointed for the taking of the poll) at which the person named in the instrument proposed to vote and in default the instrument
or proxy shall not be treated as valid

 

		9.4	No instrument appointing a proxy shall be valid after the expiration of 12 months from the date
named in it as the date of its execution.

 

		9.5	An instrument of proxy may be in any usual or common form or in any other form which the directors
of the Company may approve. An instrument of proxy shall be deemed to confer the right to demand or join in demanding a poll. An
instrument of proxy shall, unless the contrary is stated therein, be valid as well for any adjournment of the meeting as for the
meeting to which it relates and need not be witnessed.

 

		9.6	A vote given in accordance with the terms of an instrument of proxy shall be valid notwithstanding
the previous death or insanity of the principal or revocation of the proxy or of the authority under which the proxy was executed
provided that no notification in writing of such death, mental illness or revocation shall have been received by the Company at
its registered office or at such other place as may have been specified in or by way of note to or in any document accompanying
the notice convening the meeting at least one hour before the commencement of the meeting or adjourned meeting at which the proxy
is used or, in the case of a poll otherwise than at or on the same day as the meeting or adjourned meeting, before the time appointed
for the taking of the poll at which the vote is cast.

 

		10	Representatives

 

Any company
or other body corporate which is a registered holder of any of the Warrants may by resolution of its directors or other governing
body authorise any person to act as its representative at any meeting of the Warrantholders and such representative shall be entitled
to exercise the same powers on behalf of the company or corporation which he represents as if he were the registered holder of
the Warrants and such company or body corporate shall, for the purpose of these provisions, be deemed to be present in person at
any such meeting if a person so authorised is present thereat.

 

    	 	20	 

    	 	 

    

 

		11	Resolutions

 

		11.1	The expression “Extraordinary Resolution” means a resolution passed at a meeting
of the Warrantholders duly convened and held in accordance with the provisions herein contained and carried by a majority consisting
of not less than 75 per cent. of the persons voting thereat upon a show of hands or, if a poll is duly demanded, by a majority
consisting of not less than 75 per cent. of the votes given on such poll.

 

		11.2	A resolution in writing signed by Warrantholders entitled to subscribe for not less than 75 per
cent. of the Ordinary Shares which are the subject of outstanding Warrants pursuant to this Instrument in accordance with the provisions
herein contained shall for all purposes be valid and effectual as an Extraordinary Resolution passed at a meeting duly convened
and held in accordance with the provisions herein contained. Such resolution in writing may be contained in one document or in
several documents in like form each signed by one or more of the Warrantholders. In the case of a body corporate the resolution
may be signed on its behalf by a director or the secretary thereof or by its duly authorised representative or duly appointed attorney.

 

		11.3	An Extraordinary Resolution passed at a meeting of the Warrantholders duly convened and held in
accordance with this Instrument shall be binding upon all Warrantholders whether or not present at the meeting and each of the
Warrantholders shall be bound to give effect thereto accordingly.

 

		12	Minutes

 

		12.1	Minutes of all resolutions and proceedings at every meeting shall be made and duly entered in books
to be from time to time provided for that purpose by the Company.

 

		12.2	Any minutes of resolutions and proceedings of meetings of Warrantholders as aforesaid, if purporting
to be signed by the Chairman of the meeting, shall be conclusive evidence of the matters therein stated and, until the contrary
is proved, every such meeting in respect of the proceedings of which minutes have been made shall be deemed to have been duly held
and convened and all resolutions passed thereat to have been duly passed.

 

    	 	21	 

    	 	 

    

 

Schedule
4

Adjustments

 

		1	Adjustments to be made

 

If there is
an Adjustment Event whilst any of the Warrants are outstanding, the Exercise Price and number of Ordinary Shares to be, or
capable of being subscribed on any subsequent exercise of any Warrant will be adjusted in the manner set out in this Schedule 4.

 

		2	Adjustment of Exercise Price

 

The Exercise
Price shall from time to time be adjusted in accordance with the provisions of this paragraph 2 and as follows for each event giving
rise to such adjustment (each an “Adjustment Event”):

 

		2.1	Consolidation or Sub-division/Combination of Ordinary Shares: If the Company, at any time
while the Warrants are outstanding, shall:

 

		(a)	subdivide the nominal value of Ordinary Shares into a larger number of shares; or

 

		(b)	consolidate/combine the nominal value of Ordinary Shares into a smaller number of shares,

 

the Exercise
Price shall be adjusted by multiplying the Exercise Price in force immediately prior to the date such alteration becomes effective
by the following fraction:

 

	A
	B

 

		where:	

 

		A	is the nominal amount of one Ordinary Share immediately after such alteration; and

 

		B	is the nominal amount of one Ordinary Share immediately before such alteration.

 

Such
adjustment shall become effective on the date the alteration takes effect.

 

		2.2	Other Events: If and whenever the Company (in its sole discretion) determines that:

 

		2.6.1	an adjustment should be made to the number of Ordinary Shares receivable upon exercise of a Warrant
as a result of one or more events or circumstances not referred to in sub-paragraphs 2.1 above (even if the relevant event or circumstance
is specifically excluded from the operation of such clauses);

 

		2.6.2	more than one event which gives rise or may give rise to an adjustment to the number of Ordinary
Shares receivable upon exercise of a Warrant has occurred or will occur within such a short period of time that a modification
to the operation of the adjustment provisions is required in order to give the intended result; or

 

    	 	22	 

    	 	 

    

 

		2.6.3	one event which gives rise or may give rise to more than one adjustment to the number of Ordinary
Shares receivable upon exercise of a Warrant has occurred or will occur such that a modification to the operation of the adjustment
provisions is required in order to give the intended result,

 

then the Company
shall, at its own expense, use its reasonable endeavours to procure that such adjustment (if any) to the number of Ordinary Shares
receivable upon exercise of a Warrant as is fair and reasonable to take account thereof and the date on which such adjustment should
take effect shall be determined by the appointed Investment Bank.

 

Upon such
determination, the Company shall procure that such adjustment (if any) shall be made and shall take effect in accordance with such
determination, provided, however, that an adjustment shall only be made pursuant to this clause if the appointed Investment Bank
is requested to make such a determination not more than 30 calendar days after the date on which the relevant event occurs or circumstances
exist.

 

		2.3	If any doubt shall arise as to the appropriate adjustment to the Exercise Price, a certificate
of the Investment Bank shall be conclusive and binding on all concerned.

 

		2.4	The Exercise Price may not be reduced so that, on exercise of any Warrants, Ordinary Shares would
fall to be issued at a discount to their nominal value.

 

		2.5	On any adjustment, the resultant Exercise Price shall be rounded down to the nearest £0.001
so that any amount under £0.0005 shall be rounded down and any amount of £0.0005 or more shall be rounded up). Any
amount by which the Exercise Price is rounded down shall be carried forward and taken into account in any subsequent adjustment.

 

		2.6	No adjustment shall be made to the Exercise Price where such adjustment would be less than 1 per
cent. of the Exercise Price then in effect. Any adjustment not required to be made pursuant to the preceding sentence shall be
carried forward and included in any subsequent adjustment but such subsequent adjustment shall be made on the basis that
the adjustment not required to be made had been made at the relevant time.

 

		2.7	No adjustment shall be made to the number of Ordinary Shares in respect of which a Warrantholder
is entitled to exercise its subscription rights where Ordinary Shares or other securities (including rights, warrants or options)
are issued, offered, exercised, allotted, appropriated, modified, granted, subscribed, purchased or otherwise acquired pursuant
to, or in connection with, any Employees’ Share Scheme.

 

		2.8	For the avoidance of doubt, unless the Company otherwise determines, or unless the CREST Regulations
and/or the rules of the relevant system concerned otherwise require, any additional Warrants issued in accordance with this Schedule
4 shall be issued in uncertificated form where they are issued to a holder of Warrants which are held in uncertificated form at
the close of business on the date on which such additional Warrants are issued (or at such other time as the Board may, subject
always to the facilities and requirements of the relevant system concerned, in its absolute discretion determine) (the “issue
date”) or in certificated form where they are issued to a holder of Warrants which are held in certificated form at the close
of business on the issue date. Additional Warrants which are issued in uncertificated form will be credited to the stock account
of the Warrantholder concerned (being an account maintained by the relevant system concerned under the same participant and member
account identification codes as the account to which the Warrants held in certificated form by such Warrantholder are credited
at the close of business on the issue date).

 

    	 	23	 

    	 	 

    

 

		3	Adjustment of subscription rights

 

		3.1	Whenever the Exercise Price is adjusted in accordance with this Schedule 4 the number of Ordinary
Shares for which a Warrantholder is entitled to subscribe shall be increased or decreased (as appropriate) at the same time as
such adjustment takes effect. The number of Ordinary Shares to which a Warrantholder shall be entitled shall be calculated as follows:

 

X x (Y/Z)

 

where:

 

		X	is the aggregate number of Ordinary Shares for which the Warrantholder is entitled immediately
before the adjustment;

 

		Y	is the Exercise Price immediately before the adjustment; and

 

		Z	is the Exercise Price immediately after the adjustment.

 

 

 

		3.2	No fractions of Ordinary Shares for which a Warrantholder is entitled shall be allotted or issued
on the exercise of any subscription rights and no refund will be made to the Warrantholder exercising such subscription rights.
If the exercise of any subscription rights would require a fraction of an Ordinary Share to be allotted, the aggregate number of
Ordinary Shares so allotted to a Warrantholder will be rounded down to the nearest whole Ordinary Share.

 

    	 	24	 

    	 	 

    

 

	
        Execution page

         

         

         

        Executed by MIDATECH PHARMA PLC

        acting by:

         
	 	 	,
	 	 	Director

signature	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	,
	 	 	print name	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	,
	 	 	Director

signature	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	,
	 	 	print name	 

 

 

25

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