Amphion Innovations plc
Amphion Secures New Loan Facility
London and New York, 5 June 2014 –Amphion Innovations plc (LSE: AMP) (“Amphion” or the “Company”), the developer of medical and technology businesses, today announces that the Company has been granted a loan facility (“Facility”) by an institutional lender (“Lender”). The Company has drawn down an initial sum of $2 million with a further draw down facility of up to a maximum of $10 million, subject to the consent of each party. The funds are to be used for working capital for Amphion and its Partner Companies. The principal terms of the Facility are set out below.
Amphion’s Chief Executive Officer, Richard Morgan, said: “Amphion has expectations of cash inflows from several different sources over the next six to twelve months and this facility provides the capital we need to bridge to those inflows without incurring excessive dilution. These funds will enable us to continue to support our IP licensing programme and the further development of our Partner Companies.”
Principal Terms of the Facility
The Facility is secured by part of Amphion’s holding in Kromek Group plc (“Kromek”) and may be repaid at the Company’s discretion in cash, the issue of Amphion shares, or the payment of Kromek shares where the Lender will be subject to certain limitations including adherence to any existing lock-in and an orderly market agreement. Repayment will be on a monthly basis starting on 1 September 2014 with final payment due 1 June 2015.
The interest rate on the loan is 12 per cent per annum of the gross amount provided to the Company. As part of the loan terms the Lender will receive 8,532,350 3-year warrants in Amphion with an exercise price of 4.375 pence per share.
In addition, Amphion will be issuing the Lender 663,627 3-year simulated warrants at an exercise price of 56.25 pence per share. If the Lender exercises the warrants, Amphion will pay the difference between the exercise price and the Kromek market price. The Company will also pay a further 8 per cent of the gross amount provided as an implementation fee.
For further information please contact
+1 212 210 6224
Tim Robertson / Ben Heath
+44 020 3151 7008
Panmure Gordon Limited
Freddy Crossley / Fred Walsh / (Corporate Finance)
Adam Pollock / Charlie Leigh-Pemberton (Corporate Broking)
+44 020 7886 2500
Plumtree Capital Limited (Advisor to Amphion)
+44 207 183 2493
+1 646 568 7502
About Amphion Innovations plc
Amphion (LSE: AMP) builds shareholder value in emerging companies in the medical and technology sectors, by using a focused, hands-on company building approach, based on decades of experience in both the US and UK. Amphion has significant shareholding in 7 Partner Companies developing proven technologies targeting substantial commercial marketplaces. The Amphion model has been refined to optimise the commercialisation of patents and other intellectual property within the Partner Companies. The Partner Companies collectively own or control over 200 separately identified pieces of intellectual property, a number which grows rapidly each year.
On the web: www.amphionplc.com