Amphion Innovations plc announces that the Company has agreed terms for re-structuring the loan payments under the Facility and the draw-down of an additional US $1.1 million (net after fees and expenses) under the loan facility as announced on 5 June 2014 (the “Facility”).
London and New York, Amphion Innovations plc (AIM: AMP), the developer of medical, life science, and technology businesses, announces that the Company has agreed terms for re-structuring the loan payments under the Facility and the draw-down of an additional US $1.1 million (net after fees and expenses) under the loan facility as announced on 5 June 2014 (the “Facility”).
The loan balance under the Facility after the additional draw will be US $4.23 million including fees and accrued interest through the date of close. The loan balance plus accrued interest will come due on 30 September 2019. Prior to the additional draw down, US $2.8 million plus accrued interest would have been repayable in three payments on 15 October, 15 November, and 15 December 2018.
Under the amended terms of the Facility, the interest rate will be 10% per annum. The Lender will also receive 15% of the appreciation on Amphion’s holding of 10,000,000 ordinary shares in Motif Bio plc (“Motif”), above 33 pence. The 15% will be reduced to 10% if the loan is fully paid by 30 March 2019. The Lender’s participation in the appreciation of the Motif shares will expire the earlier of 30 September 2021 or when the Company has sold all of their ordinary shares in Motif. The proceeds from the additional draw are to be used for working capital for Amphion and its Partner Companies.
The increased loan amount under the Facility will continue to be secured by the Company’s pledge of 24,475,591 ordinary shares of Motif. Amphion has transferred the legal title to, but retains the beneficial interest in, the total pledged shares. The Facility also includes certain terms based on the value of the pledged Motif shares compared to the outstanding balance of the Facility. At the current date, the value of the Motif shares are sufficient to cover the outstanding balance based on the terms of the Facility. In the future should the value of the pledged shares not meet the terms, the Board may be required to partially repay or renegotiate the Facility in the short term. It is the Board’s intention to make any repayments in cash. Pursuant to the Facility, certain terms concerning the value of the pledged Motif shares compared to the outstanding balance of the Facility would prohibit Amphion from encumbering or selling shares Amphion owns in Polarean Imaging plc without the Facility lenders’ consent.
The Company remains cash constrained and continues to consider both its short term and medium term funding options and work with the Company’s debt providers.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (“MAR”).
