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Hardware & electrical equipment

Amphion reaffirms faith in Polarean after reluctantly trimming its stake

Trading in Amphion's shares is currently suspended. The company said it remains highly cash-constrained.

Amphion Innovations PLC (LON:AMP), the developer of medical, life science, and technology businesses, has trimmed its stake in Polarean Imaging PLC (LON:POLX).

The company sold 750,000 shares between 23 September and 2 October, reducing its stake to 15.97mln Polarean shares, equivalent to roughly 13.96% of the company.

Proceeds of around US$172,000 from the sale will be used to reduce the company's loan, which has been secured against its holding in Polarean and is due to be repaid by 30 September 2020.

The size of the loan has now been cut to around US$2.3mln, excluding the lender's share of the pledged share price appreciation, which is currently in the region of US £172,500.

As at last night's closing price, Amphion's stake in Polarean was valued at around US$3.3mln.

Amphion indicated it was a reluctant seller of the shares and said it remains excited by the future prospects of Polarean, which is a medical imaging technology company that is developing a proprietary drug-device combination product.

Amphion said it remains highly cash-constrained and continues to consider both its short-term and medium-term financing options.

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