Cash-strapped Amphion pushes loan due date to September next year
Medical, life science and technology business developer Amphion Innovations has agreed to amend the terms under the loan facility with its debt provider as originally announced on 5 June 2014, and following the most recent amendment on 1 April, it announced on Wednesday.
The AIM-traded firm said the lender had agreed to extend the maturity date of the facility to 30 September 2020, with no other terms being amended.
It said the loan amount under the facility would continue to be secured by its pledge of 16,722,523 ordinary shares of Polarean Imaging.
Amphion had transferred the legal title of the total pledged shares in Polarean to the lender, but retained the beneficial interest in the shares, it explained.
Since its announcement on 10 September, 400,000 ordinary shares of Polarean had been sold for the partial repayment of the facility, Amphion confirmed,
Following this sale, Amphion held 16,722,523 ordinary shares in Polarean, representing 14.61% of its issued share capital.
The sale generated total proceeds of around $94,000, which would be applied to reduce the loan balance under the facility.
Amphion said the loan balance outstanding was around $2.4m, excluding the lender's share of the pledged share price appreciation.
The current value of the remaining shares pledged as security for the outstanding loan was about $3.7m, at a share price of 18p.
“Amphion remains highly cash constrained and continues to consider both its short term and medium term financing options and work with its debt providers,” the board said in its statement.
“Further to the company's announcement on 27 June, the company's shares remain suspended from trading on AIM, pending publication of the company's annual report and accounts for the year ended 31 December 2018.
“The company's unaudited interim results for the six months ended 30 June 2019 will not be published until such time as the 2018 accounts have been published.”