LONDON (Alliance News) - Amphion Innovations PLC said Monday it has amended its loan facility first agreed in 2014 and then amended last October.
Amphion amended the loan interest rate to 10% per annum and agreed to give the lender 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 and the lender have now agreed to sell USD750,00 of Motif Bio shares with two-thirds of the proceeds being used to reduce the loan balance, which currently stands at USD4.1 million.
Going forward, the loan interest rate will remain at 10% but the lender will receive 15% of the future appreciation of 10.0 million Motif shares above 10p and also 15% of the appreciation in 10.0 million Polarean Imaging PLC shares above 18p.
The agreement will end in September 2021 or when Amphion has sold all of its shares in Motif and Polarean.
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.
Shares in Amphion Innovations closed flat Monday at 0.38 pence each.