Amphion Innovations PLC (LON:AMP) has reduced its stake in its partner company, Motif Bio PLC (LON:MFTB) with the sale of 1.7mln shares.
Following the disposal, AIM-listed Amphion still holds around 41.45 mln ordinary shares in Motif Bio, representing a 15.8% stake.
The medical, life science, and technology developer said the share sale is being made in partial repayment of the loan facility originally announced on 5 June 2014.
READ: Amphion Innovations optimistic for Motif Bio and Polarean
Up to June 2017, Amphion has drawn down US$6.149mln under the facility, using certain assets of the business as collateral.
This capital has been used to support the development of the partner companies, which will in turn enhances the asset value of Amphion.
If not modified, Amphion said the loan facility will be due for final payment by December 2017.
The firm added that discussions are continuing with the facility’s lender in relation to a rescheduling of the remaining amounts due.
In its statement, Amphion said: “Our confidence in the future of Motif Bio remains high and we will endeavor to minimise the further reduction of the size of our holding.”