Amphion Innovations has agreed terms for re-structuring the loan payments and the draw-down of an additional US $1,550,000 under the loan facility announced in June 2014.
The loan balance under the facility after the additional draw will be US $6,187,786 including fees and accrued interest through the date of close.
The loan balance will be repaid in 7 monthly instalments from 15 Jun-15 Dec 2018.
Prior to this change the loan balance would have come due on 15 Jan 2018.
Under the terms of the additional draw, the interest rate will be 10%. The lender will also receive 10% of the appreciation on 12,000,000 ordinary shares of Motif Bio plc above 35 pence.
The proceeds are to be used for working capital for Amphion and its partner companies.
The current loan under the facility continues to be secured by the pledge by the company of 36,371,625 ordinary shares of Motif Bio.
Amphion has transferred the legal title to, but retains the beneficial interest in, the total pledged shares.
The lender has agreed not to sell any ordinary shares of Motif Bio until 15 Jun 2018 as long as the company remains in compliance with the terms of the facility.
Amphion also announced a further update regarding its partner company Polarean Imaging, in which Amphion currently has an interest of circa 26%. It said that further to the its announcement of 22 Nov, Polarean has successfully closed on £647,127.00 in interim funding in the form of a convertible promissory note (CPN).
The CPN will automatically convert into fully paid ordinary shares of Polarean at a conversion price equal to 90% of the issue price of ordinary shares upon admission to trading on AIM.
In the event the shares are not admitted to trading by 31 Mar2018, the CPN will be repayable over 10 months from 1 Apr.
The proceeds will be used to ensure there are adequate financial resources to complete the proposed IPO which is expected in Q1 2018, market conditions permitting.