Drawdown of an additional tranche of US $3m
- Amphion has agreed terms for the drawdown of an additional tranche of US $3m under its loan facility as announced on 5 June 2014, to be draw down in two consecutive tranches, the first being made on 25 November 2015 and the second on 8 December 2015.
- Under the terms of the additional drawdown, the simulated warrants over Kromek Group plc (as detailed in the 5 June 2014 announcement) will be cancelled, the interest rate on the Facility will be reduced from 12% to 10%, and no additional Amphion warrants will be granted.
- The remaining terms of the additional draw-down remain substantially the same.
- The additional draw is to be repaid in monthly instalments starting 1 March 2016, with the final monthly repayment due on 1 November 2016.
- The proceeds are to be used to repay the existing amount due under the Facility and for working capital for Amphion and its Partner Companies.
Northland Capital partners view on Amphion Innovations PLC: Amphion has effectively drawn down an additional $3m on improved terms to its previous facility. We view this as a clear step in the right direction—the group continues to strengthen its balance sheet. With significant stakes in both Motif Bio plc and Kromek Group plc, we estimate that Amphion’s current share price does not reflect the group’s net asset value.
