Amphion Innovations Plc (LON:AMP) saw its shares gain 7% on Friday after the developer of medical, life science, and technology businesses announced a year’s extension to the redemption of £6mln worth of convertible promissory notes.
In a statement, the AIM-listed firm said the holders of the convertible promissory notes, previously due on 31 December 2017 had unanimously agreed to amend the terms of redemption until 31 December 2018, subject to certain early partial redemption options, unless previously converted.
READ: Amphion Innovations sets out repayment plan as it draws down additional US$1.55mln from loan facility
The group said the notes will be convertible into fully paid ordinary shares of the company at a conversion price of 5p each, or 3p each after 31 March 2018.
It added that the interest on the notes of 5% - 10% after 31 March 2018 - will accrue from the beginning of 1 January 2018 and will be payable quarterly.
The group said its independent directors, having consulted with the company's nominated adviser, Panmure Gordon, agree that the amendment to the terms of the notes are “fair and reasonable insofar as the Company's Shareholders are concerned”.
Richard Morgan, Amphion’s chief executive officer said: "Most of the remaining loans on the balance sheet are due to the Estate of Jim Macaleer, our former Chairman, and the Estate has agreed in principle to extend payment to 31 December 2018.
“As a result, all of our major categories of loans have been extended to December 2018."
In late afternoon trading, Amphion shares were still 7.3% higher at 1.48p.
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