AMPHION INNOVATIONS (LON:AMP)
SECTOR – HEALTHCARE
RATING – CORP*
MARKET CAP – £1.57m
CURRENT PRICE – 0.75p
ANALYST – LIAM GASCOIGNE-COHEN
Year-end Dec
2015A
2016A
2017A
2018E†
Revenue (US$m)
0.5
0.1
0.3
No
forecasts
provided
Operating loss (US$m)
(4.2)
(3.3)
(2.9)
Pre-tax Profit (US$m)
5.9
(16.8)
2.5
EPS (cents)
3
(9)
1
DPS (cents)
-
-
-
NAV (US$m)
10.9
(5.9)
(2.8)
P/E (x)
-
-
-
Dividend yield (%)
-
-
-
EV/EBITDA (x)
-
-
-
SOURCE: Northland Capital Partners Limited estimates. Priced at market close. *Northland Capital Partners Limited acts as Joint Broker to Amphion and therefore this information should be viewed as a Marketing Communication.
Extended repayment and additional draw down on loan facility
NORTHLAND VIEW
§ Amphion has agreed terms for re-structuring the loan payments under the loan facility first announced on 5th June 2014, as well as the draw-down of an additional US$1.1m.
§ The loan balance (including the $1.1m draw-down) will be US$4.23m through to the date of close. The loan balance plus accrued interest will come due on 30th September 2019. The amended facility terms will have an interest rate of 10% p.a.
§ The proceeds from the additional draw-down are to be used for working capital for Amphion and its partner companies.
§ The loan will continue to be secured by Amphion’s pledge of 24,475,591 shares in Motif Bio (MTFB.L). Currently the value of the Motif shares are sufficient to cover the outstanding balance of the loan facility. The revised terms of the facility provide the lender a 15% premium on the appreciation on Amphion's holding of 10m shares in Motif, above 33p. The 15% will be reduced to 10% if the loan is fully paid by 30th March 2019. The premium expires the earlier of 21th September 2021 or on the sale of all Motif share holdings.
Prior to the additional draw down, US$2.8m plus accrued interest would have been repayable in three payments on 15 October, 15 November, and 15 December 2018. The extension of the loan facility to H219 allows scope for milestone achievement regarding Amphion’s partner companies, and prevents an early exit of the shares. Motif Bio recently submitted a New Drug Application (NDA) to the FDA for iclaprim, its antibiotic candidate. The FDA has set a target decision date in February 2019 and, if approved, Motif is targeting a US commercial launch in H119. In the meantime, Motif is preparing for a commercial launch later in 2019, by seeking commercialisation partners for its product candidate.
COMPANY DESCRIPTION
Amphion Innovations is an incubator of medical, life science, and technology businesses.