Amphion (LON:AMP) – CORP: Loan term extension
Market Cap: £7.6m; Current Price: 3.875p
Convertible Promissory Note and Macaleer loan terms extended
- A meeting of its Unsecured Convertible Promissory Notes 2008-2015 holders was held on 30 December 2015 at which it was resolved by a large majority that the terms of these notes be amended such that the due date for settlement becomes 28th February 2016 rather than 31st December 2015. Discussions with these note holders about a longer-term resolution are expected to be concluded by the end of February 2016.
- Second, agreed in principle to replace the $3,308,600 of promissory notes payable to R. James Macaleer, the former Chairman of the Company and the $3,300,000 issued to the RJM Amphion Trust, a trust set up for the benefit of Mr Macaleer’s children, with promissory notes that mature on 31st December 2016 from 31st December 2015. The rate of interest on the New Notes remains unchanged at 7%. The New Notes also contain certain provisions for early repayment.
- These new notes contain certain provisions for early repayment, however, In no case will any payment be made on these notes until the amounts currently owed under Amphion's existing Loan Facility are fully repaid. The final payment under the Loan Facility is currently scheduled for 1st November 2016.
NORTHLAND CAPITAL PARTNERS VIEW: Today's announcement is a positive step forward for Amphion, as the group has effectively rolled over a large tranche of its debt, and is negotiating the roll over of the balance.
Corero Network Security (LON:CNS): Contract win
Market Cap: £26.5m; Current Price: 16p
Contract win with US hosting provider
- Order secured with a US hosting provider for Corero’s SmartWall Threat Defense System. The order valued at more than $400k is Corero’s largest single hosting provider deployment to date and follows a successful Proof of Concept trial. The PoC demonstrated the effectiveness of having in-line, real-time DDoS protection as well as automatic mitigation. The contract comprises multiple SmartWall TDS products with supporting SecureWatch services for one year.
NORTHLAND CAPITAL PARTNERS VIEW: Good contract win and momentum is gradually building behind the company’s SmartWall DDoS protection appliance. The threat posed by DDoS is well understood by corporates and hosting providers given the large number of high profile attacks and Corero has been able to demonstrate a competitive advantage in the hosting provider market. From the hosting providers’ perspective, DDoS protection represents a potential additional revenue stream as they can offer DDoS-protected hosting. The main issue faced by Corero has been around raising its profile and getting onto tender lists. The contract newsflow suggests some success.