LONDON (Alliance News) - Amphion Innovations PLC Thursday said it it had been granted a loan facility by an unnamed institutional lender, which it will use for working capital ahead of expected cash inflows it is set to receive in the next six to 12 months.
The developer of medical and technology businesses said it has already drawn down USD2 million of the new facility, and can draw down up to USD10 million more.
"Amphion has expectations of cash inflows from several different sources over the next six to twelve months and this facility provides the capital we need to bridge to those inflows without incurring excessive dilution," Amphion Chief Executive Richard Morgan said in a statement.
"These funds will enable us to continue to support our IP licensing programme and the further development of our partner companies," he added.
In a statement, the company said the loan is secured by part of its holding in Kromek Group PLC, and can be repaid at its own discretion with cash, Amphion shares, or Kromek shares. Repayment will start on a monthly basis from September 1, with the final payment to be made on June 1 next year.
As part of the loan terms, the lender will receive 8.5 million three-year warrants in Amphion with an exercise price of 4.375 pence per share. It will also get 663,627 three-year simulated warrants at an exercise price of 56.25 pence per share, and if the lender exercises these warrants, Amphion will pay the difference between the exercise price and the Kromek market price.
Amphion is being charged interest at 12% a year on the gross amount. It will also pay 8% of the gross amount as an implementation fee.
Amphion currently has seven partner companies in which it is invested, including digital x-ray systems company Kromek Ltd, software company Axcess International Inc, online energy trading marketplace PrivateMarkets Inc, and clinical research tools company m2m Imaging Corp. It has a 14.82% stake in Kromek.
Amphion Innovations shares were down 4.8% at 2.50 pence Thursday.
By Steve McGrath; email@example.com; @stevemcgrath1
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