(Alliance News) - Biopharmaceutical firm Motif Bio PLC said on Thursday has amended its loan agreement with Hercules Capital Inc, delaying the next amortisation date by one month to September 1.
As a result, the company's August payment to the lender will only be an interest charge. Both companies agreed to the amendment so Motif Bio could manage its cash in order to advance its "expansion strategy".
Chief Executive Graham Lumsden said: "As we continue to evaluate options to build our pipeline, we are fortunate to have the support of our investors, who understand and appreciate the opportunities that may lay ahead. We appreciate the flexibility of Hercules Capital and the confidence they have in our management team to accomplish our strategic goals."
Motif Bio was initially issued a USD20.0 million debt financing facility by Hercules in November 2017 to fund pre-commercialisation activities for the launch of its iclaprim antibiotic.
In February this year, the agreement was amended, requiring Motif Bio to immediately pay USD7.0 million.
Shares in the company were up 14% at 3.04 pence each in London on Thursday morning