Amphion, a developer of medical, life science, and technology businesses, has re-negotiated the terms of the convertible promissory notes issued by Motif Bio, amounting to US $3,550,786, held by Amphion and its subsidiary Amphion Innovations US Inc.
Under the original terms of the CPN, the CPN accrues interest at 7% per annum and the Noteholders are entitled to convert all of the principal and interest at US $0.2447 at any time following maturity at 31 December 2016.
By maturity of the CPN, Motif will have accrued US $441,185 in interest cost under the CPN.
If the CPN is elected to be fully converted by the Noteholders at the Conversion Price, Motif will be required to issue over 1.8 million ordinary shares in Motif to the Noteholders with a value of approximately US $1.2 million at the closing mid-market share price of Motif as at 7 September 2016.
Motif and Amphion have agreed to a re-negotiation in terms of the CPN, such that the Noteholders received US $314,146 in cash and will on the date of the CPN receive 409,000 ordinary shares in Motif in full satisfaction of the interest payments, and that the ongoing interest payments will now cease.
All future payments of the CPN principal amount to the Noteholders will be by way of conversion at the Conversion Price only and Amphion will also be granted a right to convert prior to 31 December 2016.
In addition, in anticipation of Motif's proposed US listing on NASDAQ, Amphion has entered into an agreement with Motif to provide additional corporate services, including investor relations, back office, and accounting functions, that Motif will require to fulfil its obligations as a NASDAQ listed company.
Under the terms of the consultancy agreement, which is conditional on Motif listing on NASDAQ, Amphion will provide the services for a minimum term of 12 months for a fee of US$15,500 per month.
At 8:51am: (LON:AMP) Amphion Innovations PLC share price was +0.25p at 3.5p