Yes catchme With the difference between the current KMK SP and the warrant exercise price I thought it was a high price for AMP to pay as you have. Agree with GFD this is good for AMP as the " working capital" issue is dealt with and they can carry on with their partner programmes and the court case
... the funding issue is settled; it's been eroding the sp for some time. It's also good to see that they've been able to improve the terms of the Loan Facility.
Once we get final details of the m2m merger, the sp should get back to where it was before jitters set in around funding. Positive news on the outstanding Court cases or a takeover of DataTern by either litigant should see it soar.
By "the KMK penalty clause" do you mean the following?:
"In addition, Amphion will be issuing the Lender 663,627 3-year simulated warrants at an exercise price of 56.25 pence per share. If the Lender exercises the warrants, Amphion will pay the difference between the exercise price and the Kromek market price. The Company will also pay a further 8 per cent of the gross amount provided as an implementation fee."
I understand this is good for AMP since "Amphion will pay the difference" upon exercising the warrant . But what is a simulated warrant?
Never stated in original agreement who lender was but warrants at 4.375 I am comfortable with and takes away the constant concern here of funding so can bridge to pursue court case and finish MTFB lock n period. Agree like RM and at also help finance m2m activity
Thoughts are Reasonable as neede money and better than a placing. The interest rate has fallen from 12-10% and they have got rid of the KMK penalty clause. The warrants are set at 4.375p in AMP shares but should be able to make monthly repayments from March 2016 easily as can then sell very small stakes in MTFB as necessary to improve balance sheet.
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