16th Oct 2018 11:38
LONDON (Alliance News) - Amphion Innovations PLC on Tuesday said it has restructured its loan payments and agreed a further USD1.1 million draw-down.
Amphion's shares dropped 12% to 0.66 pence on Tuesday.
The medical, life science, and technology business investor said the balance of its loan after the additional draw-down will be USD4.23 million, including fees and accrued interest, with the balance of the loan plus interest due September 2019.
Before the additional draw-down, USD2.8 million plus interest would have been repayable in three payments on October 15, November 15, and December 15 this year.
The amended loan interest rate will be 10% per annum and the lender will receive 15% of the appreciation on 10.0 million of Amphion's shares in Motif Bio PLC, above 33 pence. The 15% appreciation will be cut to 10% if the loan is fully repaid by the end of March.
Amphion's pledge of 24.5 million Motif shares will continue to act as Amphion's security for the loan. Amphion retains its beneficial interest in all pledged shares, although it has transferred the legal title to the majority of these.
At present, the value of the Motif shares is sufficient to cover the terms of the facility, but the terms may be renegotiated if that ceases to be the case, Amphion said.
"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," the company added.
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