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Amphion Innovations To Work With Debt Providers To Refinance Facility

Wed, 12th Jun 2019 19:16

(Alliance News) - Amphion Innovations PLC said Wednesday its debt providers have told the company the excess value of the collateral does not meet the terms of an agreed facility between the pair.

Shares in the company closed down 27% at 0.20 pence each.

In March, Amphion amended its loan facility it first agreed in 2014 but then amended last October. Then in April, the company pledged its holding in Polarean Imaging PLC as additional security against its loan facility with its debt provider.

As part of the amendment in March, Amphion pledged 18.0 million shares in partner company Motif Bio PLC shares to act as security for the loan. The amendment in April saw the loan also be secured by the company's 18.4 million shares in Polarean.

As of Tuesday, the loan balance outstanding is about USD3.2 million, with 10.9 million Motif Bio shares held.

Shares in Motif Bio closed down 8.2% Wednesday at 3.49 pence.

"The board is working closely with the lender regarding potential resolution in connection with the collateral requirement and further announcements will be made as appropriate," the company said.

Amphion added: "The company remains highly cash constrained and continues to consider both its short term and medium term funding options and work with the company's note holders. The outstanding facility balance plus accrued interest are currently due for repayment on September 30."

Amphion retains its beneficial interest in all pledged shares, although it has transferred the legal title to the majority of these.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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